- Acquisition of third-largest cable
operator in Poland
- Expands reach of Liberty’s
market-leading platform
- Investments & innovation to benefit
Polish consumers and businesses
Liberty Global plc (“Liberty Global”) (NASDAQ: LBTYA, LBTYB,
LBTYK, LILA and LILAK) today announced that its subsidiary UPC
Poland has entered into a definitive agreement to acquire the cable
business of Multimedia Polska S.A. (“Multimedia”), the
third-largest cable operator in Poland, in an all cash transaction.
Multimedia is being valued at an enterprise value of PLN 3.0
billion (approximately $760 million1), with the final purchase
price subject to potential downward adjustments for the operational
and financial performance of Multimedia prior to closing. The PLN
3.0 billion purchase price equates to a multiple of 6.2x
Multimedia’s 2015 full-year Adjusted EBITDA2 when adjusted for PLN
124 million (approximately $30 million1) of projected annual
run-rate synergies3 derived from revenue and cost-related
items.
Mike Fries, CEO of Liberty Global, commented, “This acquisition
will significantly increase our scale in Poland, where we are
already the largest cable operator. It will also enhance our
ability to invest in cutting-edge products and services for Polish
consumers and businesses that will help drive organic growth across
our enlarged footprint of over four million premises. Upon closing
of the transaction, we will begin upgrading the Multimedia network,
after which Multimedia’s customers will be able to enjoy superfast
broadband speeds and our next-generation video service Horizon
TV.”
The acquisition of Multimedia will be financed through a
combination of incremental debt borrowings and cash on hand. The
transaction excludes Multimedia’s existing insurance, gas and
energy operations (“Non-Telecom Businesses”), which will be
retained by the shareholders of Multimedia. The transaction is
subject to customary closing conditions, including regulatory
approval, and is expected to close within the next twelve
months.
With over four million passed homes and businesses, the combined
operations of UPC Poland and Multimedia will be able to compete
more effectively to the benefit of Polish consumers and businesses
alike. As of June 30, 2016, UPC Poland passed 3.1 million homes, or
around 20% of total households in Poland, serving 1.4 million
unique customers who subscribed to 2.9 million cable subscription
services. At the end of the second quarter of 2016, Multimedia
passed 1.6 million homes4 mainly through its hybrid fiber-coaxial
cable network, serving 832,000 unique customers who subscribed to
1.4 million subscription services consisting of 643,000 video,
491,000 broadband and 241,000 telephony RGUs. In addition,
Multimedia had 54,000 mobile subscribers at June 30, 2016.
In connection with the transaction, Credit Suisse International
acted as financial advisor to Liberty Global.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding the timing and benefits of the
transaction, including scale and synergy benefits and
opportunities; the expected impact of the transaction on the
combined operations and financial performance of Liberty Global and
other information and statements that are not historical fact.
These forward-looking statements involve certain risks and
uncertainties that could cause actual results to differ materially
from those expressed or implied by these statements. These risks
and uncertainties include our ability to continue financial and
operational growth at historic levels, continued use by subscribers
of our services, our ability to achieve expected operational
efficiencies, synergies and economies of scale, as well as other
factors detailed from time to time in Liberty Global’s filings with
the Securities and Exchange Commission including our most recently
filed Form 10-K and Form 10-Q. These forward-looking statements
speak only as of the date of this release. Liberty Global expressly
disclaims any obligation or undertaking to disseminate any updates
or revisions to any forward-looking statement contained herein to
reflect any change in Liberty Global’s expectations with regard
thereto or any change in events, conditions or circumstances on
which any such statement is based.
About Multimedia Polska – Selected Key Statistics
Multimedia Polska S.A. is a leading nationwide cable and telco
operator, providing services to both residential and business
customers in Poland. Multimedia offers digital television with
video on demand (VoD), broadband and mobile data, fixed-line and
mobile voice. As of the end of June 2016, the number of homes
passed by Multimedia networks reached circa 1.63 million. As
of the end of June 2016, Multimedia provided its services to a
total of some 832,000 customers of which some 310,000 customers
used two Multimedia services (among TV, voice, internet and other)
and some 129,000 multi-play clients used three or more services.
Multimedia was one of the first Polish operators to launch digital
television services for its telephony subscribers (IPTV), triple
play bundles, broadband internet, High Definition Television (HDTV)
with return path, VoD and multiscreen (video accessible on tablets
and smartphones).
Multimedia - Key facts as per June 30,
2016 in ‘000
RGUs(4)
1,375 Video 643 Fixed Internet 491 Fixed Voice
241 Mobile subscribers(4) 54 Customers(4)
832 Total Homes Passed(4) 1,628 Of
which by hybrid fiber-coaxial (“HFC”) network 1,316
Multimedia - Key financials for
the year ended Dec. 31, 2015 in PLN Million Revenue
(EU-IFRS) 699 Adjusted EBITDA (EU-IFRS)(2)
363 Property and Equipment Additions (EU-IFRS)
224
About UPC Poland
UPC Poland is the leading cable communications and entertainment
services provider for consumer and businesses across Poland. As of
June 30, 2016, its hybrid fiber-coaxial network passed 3.1 million
homes in more than 150 cities, including the capital city of Warsaw
and the cities of Cracow and Katowice. At the end of the second
quarter of 2016, UPC Poland provided 2.9 million subscription
services to its 1.4 million unique customers consisting of 1.2
million video, 1.1 million broadband internet and 619,000
fixed-line telephony RGUs. UPC Poland offers Horizon TV, a
next-generation video platform, which had 165,000 subscribers as of
June 30, 2016, and provides customers access to approximately
700,000 WiFiSpots across its footprint. UPC Poland also offers a
range of video, voice, broadband internet, and data services for
the business market located in its service areas.
About Liberty Global
Liberty Global is the world’s largest international TV and
broadband company, with operations in more than 30 countries across
Europe, Latin America and the Caribbean. We invest in the
infrastructure that empowers our customers to make the most of the
digital revolution. Our scale and commitment to innovation enables
us to develop market-leading products delivered through
next-generation networks that connect our 29 million customers who
subscribe to over 59 million television, broadband internet and
telephony services. We also serve 11 million mobile subscribers and
offer WiFi service across seven million access points.
Liberty Global’s businesses are comprised of two stocks: the
Liberty Global Group (NASDAQ: LBTYA, LBTYB and LBTYK) for our
European operations, and the LiLAC Group (NASDAQ: LILA and LILAK,
OTC Link: LILAB), which consists of our operations in Latin America
and the Caribbean.
The Liberty Global Group operates in 12 European countries under
the consumer brands Virgin Media, Ziggo, Unitymedia, Telenet and
UPC. The LiLAC Group operates in over 20 countries in Latin America
and the Caribbean under the consumer brands VTR, Flow, Liberty, Mas
Movil and BTC. In addition, the LiLAC Group operates a subsea fiber
network throughout the region in over 30 markets.
For more information, please visit www.libertyglobal.com.
1 Based on a USD/PLN foreign exchange rate of 3.93 as
of October 17, 2016. 2 The 2015 full-year Adjusted EBITDA of
PLN 363 million is derived from Multimedia’s consolidated financial
statements that are presented in accordance with International
Financial Reporting Policies as adopted by the European Union
(“EU-IFRS”) excluding Multimedia’s Non-Telecom Businesses and
estimated reorganization and certain other nonrecurring costs, each
as determined by Multimedia’s management. Multimedia’s EBITDA is
calculated by adding depreciation and amortization to operating
profit (loss), in each case determined according to EU-IFRS. The
calculation of Adjusted EBITDA does not include any one-off events
or events that are not directly related to the Multimedia Group's
operating activity, for example profit (loss) on the sale of
non-current assets or revaluation of non-current assets. 3
The annual run-rate synergies of PLN 124 million are expected to be
delivered by 2021. These estimates comprise PLN 57 million of
incremental EBITDA derived from revenue-related synergies and PLN
67 million of cost-related synergies. 4 Revenue Generating
Units (RGUs), mobile subscribers, customers and homes passed as
defined by Multimedia as of June 30, 2016. Multimedia’s RGU count
does include asymmetric digital subscriber line subscribers.
Multimedia’s counting policies may differ from those of Liberty
Global. Accordingly, Multimedia’s statistics are not necessarily
indicative of the actual numbers to be reported by Liberty Global
once Multimedia conforms to Liberty Global's counting policies.
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version on businesswire.com: http://www.businesswire.com/news/home/20161018006640/en/
Liberty Global plcInvestor
Relations:Oskar Nooij, +1 303 220 4218Christian
Fangmann, +49 221 8462 5151John Rea, +1 303 220 4238orCorporate Communications:Matt Beake, +44 20
8483 6428Rebecca Pike, +44 20 8483 6216
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