RBC Capital Starts Liberty LiLAC (LILA) at Outperform

RBC Capital earlier initiated coverage on Liberty LiLAC (NASDAQ: LILA) with an Outperform rating and a price target of $61.00.

For an analyst ratings summary and ratings history on Liberty LiLAC click here. For more ratings news on Liberty LiLAC click here.

Shares of Liberty LiLAC closed at $49.61 yesterday.

NOTE: More background on the stock from a press release last October:

October 22, 2014:

Liberty Global plc (“Liberty Global”) (Nasdaq: LBTYA) today announced that its Board of Directors has approved a plan to create a tracking stock for its operations in Latin America and the Caribbean (the Liberty Latin America and Caribbean Group, or “LiLAC Group”). The LiLAC Group will initially have attributed to it Liberty Global’s 100% interests in VTR GlobalCom SpA and VTR Wireless SpA, as well as its 60% interest in Liberty Cablevision of Puerto Rico LLC.

Mike Fries, Chief Executive Officer of Liberty Global, stated, “The creation of a tracking stock will highlight the value of our well-positioned operations in Latin America and the Caribbean. This structure will enable us to retain the advantages of doing business as a single company, including the benefits of being able to leverage the expertise of our broader management team, our technology development program and our overall economies of scale. At the same time, we will be creating “pure-play” European and Latin American equities that we believe will be attractive to investors.”

In connection with the creation of the LiLAC Group tracking shares, record holders of Liberty Global’s ordinary shares would receive one LiLAC Group Class A, Class B or Class C ordinary share for each 20 ordinary shares of Liberty Global Class A, Class B or Class C, respectively, held by them. Liberty Global expects that the LiLAC tracking shares will trade under the symbols “LILA,” “LILAB” and “LILAK,” respectively, on the NASDAQ Global Select Market. All of Liberty Global’s businesses not attributed to the LiLAC Group will be attributed to the Liberty Global Group. The Liberty Global Group shares will continue to trade under our current symbols “LBTYA,” “LBTYB” and “LBTYK,” respectively, on the NASDAQ Global Select Market.

Liberty Global expects that the process to create and distribute the tracking shares will take approximately five months to complete. The creation of the LiLAC Group tracking shares is subject to various conditions, including the approval by the Securities and Exchange Commission (“SEC”) of our proxy statement/prospectus that was filed with the SEC today, requisite approvals of the shareholders of Liberty Global and the receipt of opinions of tax counsel. The shareholders’ meetings will be scheduled at the time that our proxy statement/prospectus is approved by the SEC. The record date for the distribution will be determined after the shareholders’ meetings. We anticipate that this transaction should be tax-free to our U.S. and U.K. shareholders.

Our Board of Directors and executive officers intend to affirmatively vote for this transaction. The businesses attributed to the LiLAC Group will continue to be managed by our Latin American divisional team and our local operating teams in both Chile and Puerto Rico, and will continue to be supervised by Liberty Global’s current executive team.

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