The Belgian cable TV operator Telenet Group Holding NV has
decided to return 950 million Euros (approximately $1.3 billion)
to its investors. Of this, 900 million Euros will be distributed
through cash and the remaining 50 million Euros will be paid in
the form of share repurchase program. Telenet is controlled by
Liberty Global Inc.
). At present, Liberty Global has Zacks Rank #2 (Buy).
Last month, Liberty Global increased its stake in its Belgian
subsidiary, Telenet to 58.4% from its existing 50.2% stake. In
September 2012, Liberty Global decided to acquire the remaining
50% stake in Telenet for approximately $2.6 billion.
Accordingly, in December 2012, the company launched a cash
offer for Telenet's shares and securities through its subsidiary
Binan Investments B.V. However, the shareholders have
successfully blocked the plan of Liberty Global to take full
control of Telenet.
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 in revenue for Liberty Global and it had 2.134 million
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 acquisitions.
On Feb 5, 2013, Liberty Global came out with a joint press
Virgin Media Inc.
), that the two companies have entered into an agreement par
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 Virgin Media will become a
formidable challenger to BSkyB, the largest pay-TV operator of
the U.K. and
BT Group plc.
). BSkyB is partially controlled by
BT GRP PLC-ADR (BT): Free Stock Analysis
LIBERTY GLBL-A (LBTYA): Free Stock Analysis
NEWS CORP INC-A (NWSA): Free Stock Analysis
VIRGIN MEDIA (VMED): Free Stock Analysis
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