Liberty Global closes Virgin Media acquisition

10 Jun 2013

Liberty Global has completed the acquisition of British cableco Virgin Media, the former has confirmed.

As previously reported by CommsUpdate, Liberty Global first announced it had agreed to acquire Virgin Media in February 2013. Under the terms of the deal, shareholders in the British operator 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. Liberty Global’s Series A share price of USD69.46 and Series C share price of USD64.50 as at 4 February 2013 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, in announcing the deal it was said 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’.

With the deal now closed, it was noted that Liberty Global, ‘a public limited company organised under the laws of England’, has become the new public parent company of Liberty Global Inc. (LGI) and Virgin Media. Further, it said that Liberty Global’s Class A, Class B and Class C ordinary shares would begin trading on the NASDAQ Global Select Market on 10 June 2013; shares of both LGI and Virgin Media have now ceased trading.

Commenting on the development, Mike Fries, president and CEO of Liberty Global, said: ‘This is a great day for customers, employees and shareholders of both Liberty Global and Virgin Media. Together we now provide over 47 million video, voice and broadband services to 25 million customers located principally in twelve European countries.’

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