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Liberty Global to buy Cable & Wireless for GBP 3.5 bln
2015-11-17 08:38:00| Telecompaper Headlines
(Telecompaper) Liberty Global has offered to acquire UK-based telecoms group Cable & Wireless Communications (CWC) for GBP 3.5 billion in a bid to expand its Caribbean business. The announcement comes six months after Liberty Global's chairman and largest shareholder John Malone acquired a 13 percent stake in CWC following the UK group's EUR 1.85 billion acquisition of Columbus International. Last month the companies confirmed they had entered into talks about bringing together CWC's strong position in the Caribbean with Liberty's operations in Chile and Puerto Rico. The stock offer for CWC is valued at 78.04 pence per share, based on closing share prices as of 13 November, with shareholders also receiving a special dividend of 3 pence per share. In a statement, Liberty Global said the offer represented a purchase price multiple of 10.7x CWC's adjusted EBITDA on 30 September after taking into consideration the unrealised cost synergies resulting from CWC's acquisition of Columbus International. The combined business would serve 10 million video, data, voice and mobile subscribers, said Liberty Global's CEO Mike Fries, adding that additional synergies would be expected beyond the previously reported USD 125 million.
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Category:Telecommunications