Virgin Media to delist on merger with Liberty Global

14 May 2013

UK cableco Virgin Media is set to delist from the London Stock Exchange (LSE), the company confirmed. The listing of Virgin Media’s ordinary shares on the Official List and the admission of those shares to trading on the Main Market of the LSE will be cancelled with effect from 0700 GMT on 10 June 10; the date in question is the trading day immediately following the date on which Virgin Media’s merger with Liberty Global is expected to become effective.

As previously reported by CommsUpdate, in February 2013 Liberty Global agreed to acquire Virgin Media in a USD16 billion stock and cash merger. At that date it was confirmed that Virgin Media shareholders would receive USD17.50 in cash, in addition to 0.2582 Liberty Global Series A shares and 0.1928 Liberty Global Series C shares, for each share they held in the UK operator. Based on Liberty Global’s Series A share price of USD69.46 and Series C share price of USD64.50 as at 4 February 2013, this implied a price of USD47.87 per Virgin Media share, and as such the implied purchase price of the entire transaction, before taking into account transaction costs and other expenses, represented an equity value of approximately USD16.0 billion and an enterprise value of approximately USD23.3 billion. Meanwhile, it was noted that the USD5.9 billion cash component of the equity purchase price would be funded ‘largely through a combination of debt financing and available liquidity of both Liberty Global and Virgin Media’.

United Kingdom, Liberty Global (incl. LGI), Virgin Media