Monthly Archives: September 2012

By Joseph de Weck - 2012-09-20T10:50:36Z

Liberty Global Inc. (LBTYA) offered to buy the remaining 49.6 percent of Belgiums Telenet Group Holding NV (TNET) for 1.96 billion euros ($2.5 billion), allowing the John Malone- led cable company to forge closer ties between European units.

Telenet investors will get 35 euros a share in cash, Liberty Global, based in Englewood, Colorado, said today in a statement. The offer is 13 percent higher than yesterdays closing price for Mechelen-based Telenets shares. Telenet jumped to 34.97 euros at 12:46 p.m. Brussels time.

Liberty Global Chairman Malone and Chief Executive Officer Michael Fries are expanding in Europe, where demand for TV, Internet and phone services delivered over cable is increasing. Liberty Global has controlled Telenet since 2007, and it bought German cable provider Kabel Baden-Wuerttemberg for 3.16 billion euros last year and its larger competitor, Unitymedia, for 3.5 billion euros in 2009.

The deal will let Malone push for stronger collaboration and synergies with his other European operations, said Marc Hesselink, an analyst with ABN Amro Bank NV in Amsterdam. The premium he paid on the Telenet share is also not excessive, which makes it a good deal.

The offer values Telenet at 5.6 times its earnings before interest, taxes, depreciation and amortization. That compares with a median multiple of 5.3 for 114 telecommunications deals in Western Europe in the past year.

Telenet shares had advanced 5.5 percent this year through yesterday. Liberty Global, which owns a 50.4 percent stake in Telenet, fell 0.2 percent to $57.28 yesterday in New York and has climbed 40 percent this year. Ziggo NV (ZIGGO), a Dutch cable company, rose as much as 5.4 percent in Amsterdam.

Europe is Liberty Globals biggest market, and the company also has assets in Latin America. Its European customers total 18.4 million. With Telenets 2.15 million cable-TV users, Belgium is Liberty Globals second-biggest market after Germany.

Demand for cable services in Europe is increasing, with customers migrating to digital connections from analogue. Digital cable penetration among German households is projected to rise to 23.7 percent in 2016 from 11.6 percent in 2011, according to researcher IHS Screen Digest. Total TV, Internet and phone subscriptions with cable companies in the country are forecast to rise by 24 percent to 32 million in 2016.

Telenet today raised its sales and profit forecasts for 2012, helped by growth in the number of subscribers that use multiple services such as digital TV and mobile-phone connections. Sales will probably rise 7 percent to 8 percent, compared with a prior range of 5 percent to 6 percent, and Ebitda growth should match that rate, it said.

Continued here:
Liberty Global Said Planning Offer for Rest of Telenet

Liberty Global announced that it is intending to launch a voluntary and conditional cash offer, for all of the Telenet Group Holding NV shares and other securities giving access to voting rights that it does not already own or that are not held by Telenet. Liberty Global has been the controlling shareholder in Telenet since February 2007 and currently owns, through its wholly owned subsidiary, Binan Investments B.V., 50.4% of Telenets outstanding issued share capital. The Intended Offer will be based on a price of EUR35.00 per ordinary share. A price of EUR35.00 per ordinary share represents a premium of approximately 14% over the adjusted average volume weighted closing price of approximately EUR30.67 for the one-month period to Sept. 18, 2012 pro forma for the EUR3.25 capital reduction paid by Telenet on Aug. 31, 2012. The Intended Offer values all the outstanding voting securities of Telenet not currently owned by Liberty Global or held by Telenet at approximately EUR1.96B. No further regulatory approvals are required.

Read more here:
Liberty Global launches voluntary, conditional cash offer for Telenet Group

ENGLEWOOD, Colo.--(BUSINESS WIRE)--

Liberty Global, Inc. (Liberty Global or the Company) (NASDAQ: LBTYA, LBTYB and LBTYK) today announced that it is intending to launch a voluntary and conditional cash offer (the Intended Offer), for all of the Telenet Group Holding NV (Telenet) (Euronext Brussels: TNET) shares and other securities giving access to voting rights that it does not already own or that are not held by Telenet. Liberty Global has been the controlling shareholder in Telenet since February 2007 and currently owns, through its wholly owned subsidiary, Binan Investments B.V., 50.4% of Telenets outstanding issued share capital (excluding treasury shares). The Intended Offer will be based on a price of 35.00 per ordinary share.

A price of 35.00 per ordinary share represents a premium of approximately 14% over the adjusted average volume weighted closing price of approximately 30.67 for the one-month period to September 18, 2012 pro forma for the 3.25 capital reduction paid by Telenet on August 31, 2012.

Liberty Globals Intended Offer will be subject to customary and normal conditions including (i) Liberty Global and its affiliates having acquired or holding, upon completion of the Intended Offer, at least 95% of the outstanding Telenet shares and voting rights and (ii) no material adverse change having occurred with respect to the financial situation or prospects of Telenet and in the financial markets in general. The Intended Offer will possibly be followed by a delisting of Telenet and a squeeze-out offer.

Liberty Global has advised Telenets board members of its intentions. In respect of Telenets intended buyback offer as announced in Telenets press release dated August 13, 2012, Liberty Global refers to the press release of Telenet released on September 20, 2012 (Brussels time).

This announcement is not a formal binding tender offer under the Royal Decree of the Belgian Law dated April 1, 2007 on public take-over bids. Whether or not the Intended Offer will eventually be made as a formal binding offer depends on a number of conditions, including the outcome of the independent valuation commissioned by the independent board members in comparison to the proposed price per share, overall financial market conditions, any material business or financial developments at Telenet and Liberty Globals ability to raise satisfactory financing.

If Liberty Global elects to proceed with a formal and binding offer, Liberty Global will file the required documentation, including the bid prospectus, with the Belgian Financial Services and Markets Authority as soon as possible. In the event that Liberty Global decides not to proceed with a formal offer, Liberty Global will immediately issue a further public announcement to that effect. In case of a formal and binding offer, Liberty Global plans to finance it by using available cash on its balance sheet and incremental borrowings.

The Intended Offer values all the outstanding voting securities of Telenet not currently owned by Liberty Global or held by Telenet at approximately 1.96 billion. No further regulatory approvals are required.

Mike Fries, President and Chief Executive Officer of Liberty Global, commented: We believe this is the right time for Telenet to become a wholly-owned part of Liberty Globals pan-European platform in its next stage of development, particularly in light of the competitive and regulatory outlook in Belgium. We are proud of the success Telenet has achieved over the years and of the many innovations it has brought to Belgian consumers.

As a long-term, industrial player in European cable, this shows our commitment to the Belgian market. Telenet is one of our most successful operations and a core part of our growing pan-European platform. We remain very supportive of the existing management team and employees at Telenet, all of whom have contributed to the companys success. We will continue our focus on investments and product innovation in Belgium.

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Liberty Global Intends to Launch a Voluntary and Conditional Cash Offer for the Shares of Telenet Group Holding NV

Liberty Global Inc. (LBTYA) offered to buy the remaining 49.6 percent of Belgium's Telenet Group Holding NV (TNET) for 1.96 billion euros ($2.5 billion), allowing the John Malone- led cable company to forge closer ties between European units.

Telenet investors will get 35 euros a share in cash, Liberty Global, based in Englewood, Colorado, said today in a statement. The offer is 13 percent higher than yesterday's closing price for Mechelen-based Telenet's shares. Telenet jumped to 34.97 euros at 12:46 p.m. Brussels time.

Liberty Global Chairman Malone and Chief Executive Officer Michael Fries are expanding in Europe, where demand for TV, Internet and phone services delivered over cable is increasing. Liberty Global has controlled Telenet since 2007, and it bought German cable provider Kabel Baden-Wuerttemberg for 3.16 billion euros last year and its larger competitor, Unitymedia, for 3.5 billion euros in 2009.

The deal will let Malone "push for stronger collaboration and synergies with his other European operations," said Marc Hesselink, an analyst with ABN Amro Bank NV in Amsterdam. "The premium he paid on the Telenet share is also not excessive, which makes it a good deal."

The offer values Telenet at 5.6 times its earnings before interest, taxes, depreciation and amortization. That compares with a median multiple of 5.3 for 114 telecommunications deals in Western Europe in the past year.

Telenet shares had advanced 5.5 percent this year through yesterday. Liberty Global, which owns a 50.4 percent stake in Telenet, fell 0.2 percent to $57.28 yesterday in New York and has climbed 40 percent this year. Ziggo NV (ZIGGO), a Dutch cable company, rose as much as 5.4 percent in Amsterdam.

Europe is Liberty Global's biggest market, and the company also has assets in Latin America. Its European customers total 18.4 million. With Telenet's 2.15 million cable-TV users, Belgium is Liberty Global's second-biggest market after Germany.

Demand for cable services in Europe is increasing, with customers migrating to digital connections from analogue. Digital cable penetration among German households is projected to rise to 23.7 percent in 2016 from 11.6 percent in 2011, according to researcher IHS Screen Digest. Total TV, Internet and phone subscriptions with cable companies in the country are forecast to rise by 24 percent to 32 million in 2016.

Telenet today raised its sales and profit forecasts for 2012, helped by growth in the number of subscribers that use multiple services such as digital TV and mobile-phone connections. Sales will probably rise 7 percent to 8 percent, compared with a prior range of 5 percent to 6 percent, and Ebitda growth should match that rate, it said.

The company said it will continue preparing a plan to buy back an 18.2 percent stake at a price of 31.75 euros a share. That price was revised down from an initially announced 35 euros due to a decrease in the company's capital. The buyback will take place if Liberty Global doesn't complete the offer or doesn't meet its conditions, Telenet said.

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Liberty Global to Buy Rest of Telenet for $2.5 Billion