Liberty Global Makes CHF5 Billion Tender Offer for Sunrise Communications --Update
August 12 2020 - 5:17AM
Dow Jones News
By Kim Richters and Ian Walker
John Malone's Liberty Global PLC said Wednesday that it has
agreed to buy Sunrise Communications Group AG for 5 billion Swiss
francs ($5.45 billion) in cash, funded from existing cash and
debt.
The cable group said it is offering CHF110 for each of the Swiss
telecommunications company's shares, a 28% premium to the closing
share price of CHF86.20 on Tuesday. The tender offer is expected to
start by the end of August.
Liberty Global said it plans to fund the deal through around
CHF3.5 billion of cash from its balance sheet and around CHF3.2
billion of debt, "of which CHF1.6 billion will be available to
refinance existing indebtedness of Sunrise as needed."
The offer, which sets Sunrise's total enterprise value at CHF6.8
billion, has the backing of the Sunrise board.
Sunrise's largest shareholder, Freenet AG, which owns about 24%
of Sunrise share capital, also supports the deal. It said Wednesday
that it committed to the offer and would receive around CHF1.22
billion for the sale of 11.05 million Sunrise shares if the tender
offer is completed successfully.
At 0820 GMT, Freenet shares were trading 15.9% higher at
EUR18.18.
Liberty Global's takeover offer comes after Sunrise failed to
take over Liberty's Swiss unit last year. The deal had collapsed in
October due to lack of support from Sunrise shareholders.
Liberty Global said Wednesday that "the combined business would
have CHF3.1 billion in revenue, 2.1 million mobile post-paid
subscribers, 1.2 million broadband subscribers and 1.3 million TV
subscribers, reflecting approximately 30% market share in each
segment."
Credit Suisse International, JPMorgan and LionTree Advisors are
advising Liberty Global financially on the transaction, while
Homburger AG and Shearman & Sterling LLP are legal advisers for
the deal.
Write to Kim Richters at kim.richters@wsj.com or Ian Walker at
ian.walker@wsj.com
(END) Dow Jones Newswires
August 12, 2020 05:02 ET (09:02 GMT)
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