Thursday, September 29, 2005

Liberty Global to Acquire Switzerland's Cablecom

Liberty Global agreed to acquire 100% of Switzerland's largest broadband cable operator, Cablecom Holdings AG from a group of selling shareholders led by Apollo Management, TowerBrook Capital Partners and Goldman Sachs affiliates. Liberty Global will pay CHF2.825 billion (US$2.186 billion) in cash. The purchase price, together with the company's net debt position, represents a multiple of 10.4 times Cablecom's estimate of 2006 operating cash flow before synergies, and is below Cablecom's announced IPO pricing range of CHF2.9 to 3.5 billion (US$2.2 to $2.7 billion). The transaction is expected to close in October 2005.

Cablecom serves about 2 million subscribers and has an 80% video penetration in its region.

Upon completion of the deal, Liberty Global will be the largest broadband cable operator in 11 of its 14 European markets, and it will have approximately 17 million total RGUs worldwide.

See also