Ziggo reveals Liberty acquisition negotiations

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Ziggo reveals Liberty acquisition negotiations

Editor | 12-12-2013

Despite a period of relative calm on the M&A front, John Malone’s Liberty Global may be indulging in pre-Christmas shopping with Dutch cableco Ziggo.

In March 2013, and only weeks after revealing it was buying out Virgin Media and boosting its stake in Belgian operator Telenet, Liberty Global acquired a 12.65% stake in Ziggo for a total investment of approximately €632.5 million. It has always been expected that Liberty would eventually aim to take full ownership and indeed it made its move in October 2013.

However, despite confirming that Liberty had indeed attempted to make another significant addition to its portfolio, Ziggo publicly rejected the US media giant’s overtures. In a short but telling statement not entirely closing the door, Ziggo said that it noted the recent market speculation and confirmed that it had received a preliminary proposal regarding a potential offer for the company by Liberty Global. Ziggo slammed the potential offer as “inadequate”, adding that there was no certainty that it would receive any revised offer.

However it has now revealed that further to its statement of 16 October 2013 it could confirm that it was currently in discussions with Liberty Global regarding a potential acquisition of the company by cable giant. It added that further announcements “will be made if and when relevant,” but warned that there was “no certainty that any agreement can be reached or that any offer will ultimately be made.”

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Ziggo confirms fresh talks with Liberty Global

December 12, 2013 09.56 Europe/London By Robert Briel


ziggo-hqLiberty Global is again in negotiations to acquire Dutch cabler Ziggo, which rejected an offer from the US group in October for being too low.

In a statement, Ziggo confirmed theb fresh talkjs. “Ziggo notes the recent market speculation and announces, further to its statement of October 16, 2013, that it is currently in discussions with Liberty Global regarding a potential offer for the company by Liberty Global.

“Further announcements will be made if and when relevant. There is no certainty that any agreement can be reached or that any offer will ultimately be made.”

Liberty owns 28.5% in Ziggo, whose market cap is €6.63 billion. If Liberty Global increases its shareholding to 30% it will have to make an offer for Ziggo under Dutch law. Confirmation of the talks sent Ziggo shares up 6% in early trading, according to Financieele Dagblad.

Should Liberty Global take cobtrol of Ziggo, the deal will be subject to regaulatory approval as the company already owns the country’s second largest cable company, UPC Nederland.

The talks come as Liberty expands its presence in Europe, having acquired Virgin Media for $16 billion earlier this year.