Liberty makes opening bid for Telenet
Editor | 18-12-2012
Through its wholly-owned subsidiary Binan Investments, Liberty Global has made its opening voluntary and conditional cash offer of €35 per ordinary share for Belgian cable company Telenet.
In a statement, Liberty regards such an offer price per ordinary share as “highly attractive” for Telenet shareholders and says that it will provide “a meaningful premium to relevant benchmarks.”
Indeed, Liberty added that at a time when the cable TV sector is trading at multi-year highs, the offer represents additional value for Telenet shareholders, pointing out that not only does it represent a 12.5% premium to the 19 September 2012 Telenet closing share price, but also a 15.2% premium compared with Telenet’s peers, including Ziggo, Kabel Deutschland, Virgin Media and LGI itself, based on trading multiples for 2013 estimated EBITDA minus estimated capital expenditures.
Liberty has been the controlling shareholder in Telenet since February 2007 and, at 30 September 2012, owned, through Binan, 50.2% of Telenet’s issued and outstanding share capital. It originally announced its intention to launch a share offer to the rest of the investors at this time with the intention of using full control to strengthen its presence in the Benelux region.