Liberty Global and Vodafone Group have announced that their Liberty Global Europe Holding and Vodafone International Holdings subsidiaries have completed the previously agreed transaction to combine their Dutch operations to form a new 50:50 joint venture. The JV, which was formalised on 31 December 2016, will operate under both the Vodafone and Ziggo brands, and will create a nationwide integrated communications provider with 7.1 million homes covered by the latter’s fixed broadband network and the cellco’s nationwide 4G mobile network. In total, ‘VodafoneZiggo’ is said to account for nearly 15 million revenue generating units (RGUs). Going forward, neither Vodafone nor Liberty Global will consolidate VodafoneZiggo, which will be reported as an equity affiliate or associate by both companies.
Mike Fries, CEO of Liberty Global, commented: ‘This joint venture is great news for Dutch consumers and businesses. VodafoneZiggo will be the most innovative provider of converged communications services in the Netherlands with a full suite of market-leading TV, broadband, fixed line and mobile products on day one of the JV. We are also excited for our shareholders. This is a highly accretive transaction with significant synergies and a predictable dividend stream. When including over EUR500 million [USD525.8 million] of cash generated and up-streamed since the announcement of the deal back in February, total proceeds to Liberty will exceed EUR2.7 billion. We look forward to deploying that capital to drive long-term growth and investor returns.’