Liberty to sell Belgium cable ops
Copyright 2006 ESPICOM Business Intelligence Ltd.
All Rights Reserved
International Telecommunications Intelligence
From Lexis Nexis
Liberty Global Inc. (LGI) has entered into a non-binding letter of intent with Telenet, the largest cable operator in Belgium, to sell 100% of its Belgium cable business, UPC Belgium NV.
Liberty Global will sell UPC Belgium for approximately €187 million (US$246 million) in cash, assuming zero net debt at closing. This represents a multiple of approximately 10 times the operating cash flow, as customarily defined by Liberty Global and excluding central and corporate allocations from Liberty Global's UPC Broadband Division.
Liberty Global has a 28.07% controlling interest in Telenet, based upon Telenet's outstanding shares at October 13, 2006. Accordingly, Liberty Global, through its controlling interest in Telenet, will continue to consolidate UPC Belgium.
The closing of the transaction is subject to Telenet Board approval, negotiation of definitive documents, and completion of due diligence, all of which are expected to be completed in the fourth quarter of 2006.