American cable vendor Liberty Global will acquire Ziggo in a cash and share deal valuing the Dutch operator at $13.7 billion to expand in Europe.
Earlier, Liberty had engaged in talks with Airtel to buy its DTH business in India.
Ziggo, which in October rejected an earlier offer from Liberty as too low, said in a joint statement on Monday that the current offer implied a price of 34.53 euros per share compared with Friday’s close of 33.25 euros.
Liberty already owns 28.5 percent of Ziggo. Liberty Global purchased 57.0 million or approximately 28.5 percent of Ziggo’s outstanding ordinary shares during 2013, at a blended purchase price of approximately €25.37 per share.
Buying the rest will increase Liberty’s presence in the Low Countries, where it owns Ziggo’s Dutch competitor UPC, as well as a majority stake in Belgian group Telenet, the main cable group in the north of Belgium.
Liberty benefits
U.S. cable group can reach 7 million or over 90 percent of Dutch homes, the combined business will provide approximately 10 million video, broadband internet and telephony services to over 4 million unique customers through a fiber-rich cable network. With approximately €2.5 billion3 in total revenue, the combined company will be a leading provider of communication services across the Netherlands.
It creates leading challenger in the mobile and enterprise businesses with the emergence of a nationwide cable operator, further ensuring sustainable competition throughout the Netherlands, benefiting the Dutch economy and society as a whole.
Its increased scale will drive efficiencies and enhance ability to invest in the development of cutting-edge products and services.
“This transaction creates a nationwide cable champion that will drive investment and innovation for the benefit of Dutch consumers and businesses alike. Our combined operations will reach over 90 percent of all Dutch households allowing us to compete more effectively with the other national telecommunications and satellite platforms in the Netherlands,” said Mike Fries, CEO of Liberty Global.
Liberty Global is targeting €160 million in annual run-rate synergies by 2018, which will underpin its growth profile over the next few years in the Netherlands.
