International cable broadband, TV and mobile provider Liberty Global has completed its acquisition of pan-Caribbean operator Cable & Wireless Communications (CWC) in a transaction valued at approximately USD7.4 billion on an enterprise value basis. CWC will be attributed to Liberty’s Latin America and Caribbean division, LiLAC. Under the deal, Liberty acquired all of the issued and to be issued share capital of CWC, in exchange for which CWC shareholders received a total of 31.607 million Liberty Global Class A ordinary shares, 77.380 million Liberty Global Class C ordinary shares, 3.649 million LiLAC Class A ordinary shares, 8.939 million LiLAC Class C ordinary shares and a dividend of GBP0.03 (USD0.04) per CWC share.
Liberty Global’s CEO, Mike Fries, commented on the takeover: ‘We are joining two high-growth businesses in a region that is both underpenetrated and underserved in broadband, mobile data and pay TV services. By combining our operations, we are creating a unique and well-diversified Latin America and Caribbean investment vehicle, which we believe will enhance long-term equity value for our shareholders.’
The combined LiLAC and CWC will serve a total of around 10.05 million customers across its combined footprint of 20 countries, including 1.77 million video, 2.04 million broadband, 2.00 million fixed telephony and 4.24 million mobile users. Combined annual turnover is expected to be in the region of USD3.6 billion.