Liberty Global Inc.
), a leading cable operator in Europe and Latin America is set to
further consolidate its foothold in the core North European
markets. Yesterday, the company announced that it has acquired
12.65% ownership of Ziggo N.V., the largest cable MSO (multi
service operator) in Netherlands.
Liberty Global has acquired 25.3 million common outstanding
shares of Ziggo from Barclays Capital Securities Ltd. for a total
consideration of Euro 632.5 million (around $809.4 million).
Liberty Global already has a strong presence in the Dutch
cable-TV market through its UPC Broadband Holding BV unit, which
is the second largest cable MSO in that country. Liberty Global
is trying to extensively penetrate the European region with its
bundled video, voice and Internet (data) services. The European
markets are still relatively untapped for this unique triple-play
At the end of 2012, Ziggo had more than 2.2 million digital TV
subscribers, almost 1.8 million Internet subscribers and 1.5
million telephone subscribers. Ziggo also competes with telecom
operators such as, Royal KPN N.V. and
Vodafone Group plc.
). A major positive for Liberty Global is that Ziggo currently
has a dividend yield of about 7.4%. Liberty Global expects Ziggo
to pay Euro 370 (approximately $473.5 million) to investors as
From early 2010, Liberty Global is continuing its business
restructuring. The company is concentrating primarily on Europe
and Latin America and divested operations in other parts of the
On Feb 5, 2013, Liberty Global came out with a joint press
Virgin Media Inc.
), that the two companies have entered into an agreement in which
Liberty Global will acquire a 100% stake in Virgin Media in a
cash and equity deal. The deal is expected to be of $15.8 billion
or an enterprise value of nearly $23.3 billion.
Both the companies are expecting the deal to be completed by
the second quarter of 2013, subject to customary regulatory
approval. If this deal gets approved, then combined entity will
become a formidable challenger to BSkyB, the largest pay-TV
operator of U.K. and
BT Group plc.
). Liberty Global currently has a Zacks Rank #2 (Buy).
BT GRP PLC-ADR (BT): Free Stock Analysis
LIBERTY GLBL-A (LBTYA): Free Stock Analysis
VIRGIN MEDIA (VMED): Free Stock Analysis
VODAFONE GP PLC (VOD): Free Stock Analysis
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