Liberty Global, Inc. announces that it has acquired 25.3 million shares in Ziggo N.V. (“Ziggo”) from Barclays Capital Securities Limited at &euro…
Liberty Global, Inc. announces that it has acquired 25.3 million shares in Ziggo N.V. (“Ziggo”) from Barclays Capital Securities Limited at €25.00 per share (the “Purchase Price”), for a total investment of approximately €632.5 million. As a result of this investment, Liberty Global owns 12.65% of Ziggo, based on the shares outstanding as of December 31, 2012.
Liberty Global considers the acquisition of this minority stake in Ziggo as an attractive opportunity to make a strategic investment in a market where it already enjoys a sizeable presence through its UPC Netherlands subsidiary.
The Purchase Price is also financially attractive given the stock’s approximate 7.4% dividend yield, which is implied by Ziggo’s expectation that it will pay €370 million of dividends during 2013. Liberty Global will fund the acquisition of Ziggo shares with a non-recourse margin loan and existing liquidity.
As the transaction does not result in Liberty Global obtaining a controlling interest in Ziggo, no regulatory approvals are required.
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