Liberty Global Inc.
), a leading cable MSO of Europe and Latin America, recently
increased its stake in its Belgian subsidiary, Telenet to 58.4%
from its existing 50.2% stake. Last September, Liberty Global
decided to acquire the remaining 50% stake of Telenet for
approximately $2.6 billion. In December 2013, the company
launched a cash offer for Telenet's shares and securities through
its subsidiary Binan Investments B.V.
Recently, Liberty Global declared that 9,497,637 ordinary
shares and 3,000 warrants of Telenet were tendered under its cash
offer. As a result, Liberty Global will get more voting rights in
Telenet. Management stated that it is closely monitoring the
organization, governance and reporting structure of Telenet and
may opt for more integrated option.
Telenet is an integrated telecom company offering television,
broadband and mobile phone services in the Dutch-speaking north
Belgium. In the third quarter of 2012, Telenet generated $461
million of revenue for Liberty Global and it had 2.134 million
subscribers. At present, Liberty Global is concentrating solely
on Europe and some parts of Latin America. From early 2010,
Liberty Global is gradually concentrating on strengthening its
foothold in Europe through a series of mergers and
In the coming years, we believe Liberty Global's revenue will
continue to benefit from a 'triple play' of video, broadband, and
telephone, as it signs up more "bundled" customers in Europe and
Latin America. Deployment of high-speed DOCSIS 3.0 network has
facilitated the company to be at par with
Virgin Media Inc.
BT Group plc.
We maintain our long-term Neutral recommendation on Liberty
Global. Currently, it enjoys a short-term Zacks Rank #3
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