Sunrise Communications Slashes Size of Rights Issue for Acquisition of UPC Switzerland

   By Max Bernhard

Sunrise Communications Group AG (SRCG.EB) said Monday that it has significantly reduced the size of a rights issue to finance its acquisition of Liberty Global PLC's (LBTYA) UPC Switzerland business after feedback from shareholders.

The Swiss telecommunications firm said it has cut the size of the rights issue to 2.8 billion Swiss francs ($2.8 billion), from an initially planned CHF4.1 billion, after meeting with shareholders.

Liberty Global said in February that it would sell the Swiss UPC unit to Sunrise in a deal with an enterprise value of about $6.3 billion. Liberty said then that it would receive roughly $2.6 billion in cash from Sunrise, which would also take on the unit's debt.

Sunrise said it is committed to maintaining a progressive dividend policy. At its 2020 annual general meeting it expects to propose an increased absolute dividend amount in the range of between CHF350 million and CHF370 million for FY 2019 based on the expected higher number of shares after the rights issue.

The company said it plans to offer a cash-or-title-option, where investors will be able to receive their dividend either in cash or in newly issued shares.

The company will hold an extraordinary general meeting on Oct. 23 to seek approval for the rights offering.

Write to Max Bernhard at max.bernhard@dowjones.com; @mxbernhard

(END) Dow Jones Newswires

September 30, 2019 02:11 ET (06:11 GMT)

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