Liberty Global's Buyout of Virgin Media Confirmed

Capping several days of speculation, Liberty Global (NASDAQ: LBTYA  ) and Virgin Media (UNKNOWN: VMED.DL  ) confirmed in a joint press release Tuesday that the former is to acquire the British company, subject to shareholder approval. The cash and stock deal has an enterprise value of $23.3 billion.

For each share they hold, Virgin Media stockholders will receive $17.50 in cash, 0.2582 Liberty Global Series A shares and 0.1928 Liberty Global Series C shares. According to the press release, this implies a buyout price of $47.87 for each Virgin Media share, or 24% higher than that stock's closing price on Feb. 4.

The buyout will significantly increase Colorado-based Liberty Global's presence in Europe. The press release [click  here to open a PDF version] quoted CEO Mike Fries as saying "After the deal, roughly 80% of Liberty Global's revenue will come from just five attractive and strong countries -- the U.K., Germany, Belgium, Switzerland and the Netherlands." The combined company will have 25 million customers in 14 countries.

The deal is subject to shareholder and regulator approval. It is expected to close in Q2 of this year.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2239089, ~/Articles/ArticleHandler.aspx, 9/24/2016 7:10:43 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 21 hours ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:00 PM
LBTYA $34.43 Up +0.51 +1.50%
Liberty Global CAPS Rating: ****
VMED.DL $0.00 Down +0.00 +0.00%
Virgin Media CAPS Rating: **