Liberty Global Announces Completion of $7.4B Cable & Wireless Acquisition

May 16, 2016 9:07 AM EDT
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Liberty Global plc (“Liberty Global”) (Nasdaq: LBTYA)(Nasdaq: LBTYB)(Nasdaq: LBTYK)(Nasdaq: LILA and (Nasdaq: LILAK) announced that it has completed its acquisition of Cable & Wireless Communications Plc (“CWC”) in a transaction valued at approximately $7.4 billion3 on an enterprise value basis.

The CWC business will be attributed to Liberty’s Latin American and Caribbean group (the “LiLAC Group”), which trades on the NASDAQ Global Select Market as a tracking stock of Liberty Global under the ticker symbols LILA and LILAK. The combination of CWC and the LiLAC Group creates the leading consumer and business-to-business (“B2B”) communications provider in the region. These operations will serve 10 million video, voice, broadband and mobile subscribers in more than 20 countries, are expected to generate over $3.5 billion4 of revenue on an annualized basis, and will become the leading platform for further consolidation in Latin America and the Caribbean.

Mike Fries, CEO of Liberty Global, said, “This is a big moment for us and I couldn’t be more excited about the potential of LiLAC and CWC together. We are joining two high-growth businesses in a region that is both underpenetrated and underserved in broadband, mobile data and pay TV services. By combining our operations, we are creating a unique and well-diversified Latin America and Caribbean investment vehicle, which we believe will enhance long-term equity value for our shareholders.”

He added, “I would like to personally congratulate Phil Bentley, outgoing CEO of CWC, for his great work over the last two and a half years. I would also like to welcome John Reid as interim CEO of CWC. We look forward to working closely with John over the next six months as we evaluate how best to structure and integrate CWC into the LiLAC Group and jointly explore new opportunities for growth and expansion. John was previously President of CWC’s Consumer Group and also held other high-profile management roles at Columbus Communications and Persona Communications.”

Mr. Reid said, “This is an exciting time for CWC and I am thrilled to work with the Liberty Global team as we plan for the next chapter of growth. By leveraging Liberty Global’s scale and management expertise I’m convinced we will accelerate innovation, enhance the speed and quality of our networks and expand opportunities for all stakeholders.”

LiLAC Group & CWC – Summary Data

The tables below provide an overview of selected data for both the LiLAC Group and CWC.

Subscribers1

LiLAC Group

CWC

Combined

Video

1,293,400

474,000

1,767,400

Broadband

1,347,600

690,000

2,037,600

Telephony

876,200

1,127,000

2,003,200

Mobile

132,000

4,109,000

4,241,000

Total

3,649,200

6,400,000

10,049,200

Financial Data ($mm)

LiLAC Group

CWC

Combined

Revenue4

$1,217

$2,384

$3,601

Total Assets4

$3,268

$6,943

$10,211

Other Data

LiLAC Group

CWC

Combined

Consumer, B2B & Networks Markets

2

18

20

Employees5

3,600

7,300

10,900

Countries with Operations

CWC Markets(Consumer, B2B & Networks)

LiLACGroupMarkets

Panama

Curacao

Puerto Rico

The Bahamas

Dominica

Chile

Jamaica

Grenada

Barbados

Montserrat

Trinidad & Tobago

St. Kitts & Nevis

Anguilla

St. Lucia

Antigua & Barbuda

St. Vincent & The Grenadines

British Virgin Islands

Seychelles

Cayman Islands

Turks & Caicos

Issuance of Shares and Dividend

The shares issued to CWC shareholders by Liberty Global in the transaction include 31,607,008 Liberty Global Class A ordinary shares, 77,379,774 Liberty Global Class C ordinary shares, 3,648,513 LiLAC Class A ordinary shares and 8,939,316 LiLAC Class C ordinary shares. CWC shareholders will also receive a dividend from CWC of 3 pence per CWC share.



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