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Liberty Global boosts Telenet stake

Wed, 10/12/2005 - 8:00pm

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From Lexis Nexis

Liberty Global Inc. (Nasdaq: LBTYA, LBTYB, LBTYK), a broadband cable operator, announced on Wednesday (12 October) that it has agreed to purchase through a wholly-owned subsidiary 7,722,918 shares in Telenet, a Belgian broadband and cable operator, under its initial public offering.

The aggregate cash purchase price is approximately EUR160m.

Of the 7,722,918 shares Liberty intends to purchase, 3,056,645 will be purchased from existing shareholders as a substitute for exercising preemptive rights with respect to the primary shares sold in the offering. The remaining 4,666,273 shares will be acquired from Liberty Global's co-investors in Telenet.

With this purchase, Liberty Global and Belgian Cable Investors, its subsidiary, will increase their combined economic ownership in Telenet from 14% to just under 20% but will continue to exercise voting control over a total of 21.3% of the Telenet shares, the company said.

Belgian Cable Investors also holds call options to acquire a further 25,418,826 shares in Telenet, or approximately 25% of the total shares that will be outstanding following the offering. The call options are priced at EUR20 per share for 6,750,000 shares and EUR25 per share for 18,668,826 shares.

The IPO is expected to close on 14 October 2005.

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