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Liberty Global Continues Network Transformation in Europe With Telenet/ Fluvius Partnership in Belgium
Liberty Global Subsidiary Telenet and Fluvius Agree to Fiber Partnership in Flanders Partnership Complements Previously Announced FTTH Plans in UK and
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[{"type":"text","content":"\nLiberty Global Subsidiary Telenet and Fluvius Agree to Fiber Partnership in Flanders\n\nPartnership Complements Previously Announced FTTH Plans in UK and Ireland, and Hybrid Approaches in The Netherlands and Switzerland\n\n DENVER, Colorado--(BUSINESS WIRE)--\nLiberty Global plc (“Liberty Global” or the “Company”) (NASDAQ: LBTYA, LBTYB and LBTYK) subsidiary Telenet Group Holding NV (‘Telenet’ - Euronext Brussels: TNET) and Fluvius System Operator (‘Fluvius’) have today entered into a highly attractive and binding agreement to create the network of the future in Flanders.\n\nThe companies will incorporate a new independent self-funding infrastructure company, “NetCo”, of which Telenet will own 66.8% and Fluvius 33.2%. Combining both companies’ fixed network assets, NetCo will invest in the gradual evolution of its current hybrid fiber coaxial (“HFC”) network into a Fiber-to-the-Home (“FTTH”) network, targeting 78% of their combined footprint in Flanders by 2038, either through building directly or with external partners, or through wholesale arrangements. NetCo will also focus on upgrading the existing hybrid fiber coaxial (HFC) network using state-of-the-art DOCSIS technology where FTTH will not be deployed.\n\nKey elements of the agreement follow:\n\n\nA fully-funded, 5x levered NetCo will result in improved ownership economics for Telenet as opposed to the current rental arrangement whereby Telenet pays to access the Fluvius network representing 1/3 of the Telenet operating footprint today.\n\n\nNetCo will operate an open access network with a market-leading utilization rate that's positioned to attract additional strategic and/or financial partners.\n\n\nMore than 50% of homes passed in NetCo's footprint are very economic to pass with FTTH at an estimated cost per premise of around EUR650.\n\n\nThe investment will be financed from NetCo's robust cash flow as well as Telenet's EUR745 million of proceeds from its recent tower divestment, with no dependency on obtaining incremental external financing.\n\n\nAt closing, Telenet’s pro forma net debt will decrease by around EUR500 million as Fluvious’ long-term emphyteutic lease will cease to exist. However, in order to maintain Telenet's consolidated net total leverage of around 4x through the CAPEX-intense build period, its dividend will be reset to a floor of EUR1.00 effective ...