Liberty Global To Buy Cable And Wireless Communications For US$5.3b

November 16, 2015

Liberty Global To Buy Cable And Wireless Communications For US$5.3b (or about 78.04 pence per CWC share).

Cable & Wireless Communications

Cable & Wireless Communications

Cable & Wireless, which has more than six million subscribers, offers pay-television, Internet, landline phone and wireless service—the so-called “quad play”—in the Caribbean, Panama, Monaco and the Seychelles, according to its website. (WSJ)

The deal represents a multiple of 10.7 times Cable & Wireless Communications’ adjusted annual earnings before interest, depreciation, taxes and amortization, after taking into consideration cost synergies, according to a statement. (Bloomberg)

Liberty Global

Liberty Global

The release stated:

  • Pursuant to the Offer, Liberty Global would acquire CWC for shares of Liberty Global in a scheme of arrangement valuing CWC at a total equity value of approximately £3.5 billion ($5.3 billion)1, or an implied price of 78.04 pence per CWC share, based on closing share prices as of November 13, 2015. Further, CWC shareholders would be entitled to receive a special dividend in the amount of 3.00 pence per share at the closing of the transaction, which would be in lieu of any previously announced CWC dividend.
  • Liberty Global will assume CWC’s existing proportionate net debt as part of the transaction, which was $2.7 billion as of September 30, 2015.
  • Upon completion, the combined business will serve 10 million video, data, voice and mobile subscribers, with leading positions across multiple markets.
  • Share offer and dividend imply blended price of 81.04 penceper CWC share

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