Business
Liberty Global to Acquire 100% of Sunrise Communications Group by Tender Offer
Strategic Combination of UPC Switzerland and Sunrise to Create the Leading Fixed-Mobile Challenger in Switzerland Tender Offer is Unanimously Recommended by
About this update from Liberty Global Ltd.
[{"type":"text","content":"\nStrategic Combination of UPC Switzerland and Sunrise to Create the Leading Fixed-Mobile Challenger in Switzerland\n\n\nTender Offer is Unanimously Recommended by Sunrise Board of Directors; Freenet, its 24% Shareholder, has Agreed to Tender its Shares\n\n DENVER, Colorado--(BUSINESS WIRE)--\nLiberty Global (Nasdaq: LBTYA, LBTYB and LBTYK) announced today that, pursuant to the terms of a transaction agreement between Liberty Global and Sunrise Communications Group AG (SIX Swiss Exchange: SRCG), Liberty Global has agreed to make an all cash public tender offer for all publicly held shares of Sunrise at a price of CHF110 per share. The offer represents a 32% premium to the 60-day volume weighted average price (“VWAP”) per share of CHF83.17 during the period up to (and including) August 11, 2020 and values 100% of Sunrise’s equity at CHF5.0 billion1, representing a total enterprise value of CHF6.8 billion2.\n\n\nKey Transaction Highlights\n\n\n\nAll-cash tender offer for 100% of the publicly held shares of Sunrise Communications Group AG (“Sunrise”) at a price of CHF110 per share, funded through a combination of Liberty Global’s existing cash, expected to be approximately CHF3.5 billion, and proceeds from new debt issuance.\n\n\n\n\nSunrise's Board of Directors is unanimously recommending that its shareholders accept the offer; Freenet AG, Sunrise’s largest shareholder, which holds approximately 24% of Sunrise’s capital, has signed a binding, unconditional commitment to tender its shares at the offer price.\n\n\n\n\nTransaction price is underpinned by significant expected total synergies of CHF3.1 billion on a net present value basis after integration costs, with the annual run rate of cost, capex and revenue synergies estimated at CHF275 million. The vast majority of the benefits (approximately CHF2.6 billion) relate to low risk cost and capital expenditure synergies.\n\n\n\n\nAttractive acquisition valuation3 for both parties representing 7.5x adjusted EBITDA4 and 10.3x adjusted OpFCF5 after taking into consideration revenue, cost and capital expenditure synergies (net of upgrade costs)6, or 10.0x adjusted EBITDA and 17.6x adjusted OpFCF before synergies.\n\n\n\n\nThe tender offer is expected to commence by the end of August with publication of an offer prospectus; closing of the transaction will occur following receipt of requi...