ENGLEWOOD, Colo.--(BUSINESS WIRE)-- <\/p>\n
Liberty Global, Inc. (Liberty Global or LGI) (NASDAQ: LBTYA, LBTYB and LBTYK) today announces that its wholly-owned subsidiary Binan Investments B.V. (Binan) has opened its voluntary and conditional cash offer (the Offer) for the outstanding shares and other securities giving access to voting rights of Telenet Group Holding NV (Telenet) (Euronext Brussels: TNET) that it does not already own or that are not held by Telenet. The prospectus sets forth the next steps in the bid process and provides further justification of the Offer price and its attractiveness for minority shareholders. Shareholders will have until 16:00 (CET) on January 11, 2013 to tender their securities into the Offer before the initial acceptance period closes. <\/p>\n
Liberty Global believes that an Offer price of 35.00 per ordinary share is highly attractive for Telenet shareholders and provides a meaningful premium to relevant benchmarks. <\/p>\n
At a time when the cable sector is trading at multi-year highs, the Offer represents additional value for shareholders in terms of1: <\/p>\n
The Offer represents an opportunity for minority shareholders to monetize their investment in Telenet at an attractive price and through an expeditious process. <\/p>\n
Liberty Global has enjoyed a constructive relationship with Telenet, starting with its initial investment eight years ago and continuing as majority controlling shareholder for the last five years. As a result, LGI has a deep understanding of Telenets business as well as the nature and magnitude of its risks and opportunities. LGI has drawn on its 20+ years of experience in the European cable sector in making its assessment of the future growth prospects of Telenet and the appropriate valuation and premiums to be offered to Telenets minority shareholders. The details of these assessments are provided in full in the prospectus. <\/p>\n
In contrast, Liberty Global has serious reservations regarding the financial projections completed by Telenet management on October 5, 2012 (the Management October LRP) and used by the Independent Expert and the Independent Directors in their valuation analysis. Liberty Global does not question Telenets ability to attract mobile subscribers in the near term, but fundamentally disagrees with the aggressive volume, price and profitability assumptions in the Management October LRP from 2014 onwards, which LGI believes, among other factors, does not adequately factor in a competitive reaction from the existing mobile providers in the market. <\/p>\n
In summary, Liberty Global notes the following regarding the Management October LRP: <\/p>\n
In addition, Liberty Global disagrees with certain methodologies used by Telenets Independent Expert and Independent Directors in their analyses of the Offer. <\/p>\n
These include the use of (i) DCF methodologies that do not incorporate DCF valuations based on brokers consensus financial projections and do not appropriately incorporate the risk of aggressive mobile projections within the assumed weighted average cost of capital, (ii) non-comparable precedent take-private transactions, (iii) an incomplete set of broker target prices and (iv) inadequate peer-company trading multiple comparisons. <\/p>\n
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Liberty Global Opens Voluntary and Conditional Cash Offer for Telenet<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" ENGLEWOOD, Colo.--(BUSINESS WIRE)-- Liberty Global, Inc. (Liberty Global or LGI) (NASDAQ: LBTYA, LBTYB and LBTYK) today announces that its wholly-owned subsidiary Binan Investments B.V. (Binan) has opened its voluntary and conditional cash offer (the Offer) for the outstanding shares and other securities giving access to voting rights of Telenet Group Holding NV (Telenet) (Euronext Brussels: TNET) that it does not already own or that are not held by Telenet. Continue reading