Just in, it is confirmed that Liberty Global will buy Cable & Wireless Communications (CWC) in a multi-billion dollar deal. News of the story broke on Liberty Media’s website and Bloomberg Business today. Here are ten facts about the deal that we know so far:
- The deal is valued at US$5.3 billion.
- Bloomberg confirms that the deal will fall under LiLAC, the Latin American and Caribbean arm of the Liberty Media behemoth.
- Terms of the deal mean that Liberty Media, through LiLAC will take on CWC’s debt stock, now estimated at US$2.7 billion.
- The takeover will be achieved through a cash-and-stock arrangement.
- The transaction value is 78.04 pence per CWC share. However, shareholders in CWC are to receive an additional dividend of 3 pence per share, bringing the amount they receive to 81.04 pence a share in cash and stock.
- It is estimated that this deal will create a broadband and wireless platform with 10 million subscribers.
- The deal has a purchase price multiple of 10.7x including only reported synergies.
- The deal is expected to close in the second quarter of 2016, after getting final approval from both Liberty Media and C&W shareholders, as well as from the relevant regulating authorities.
- At the close of the deal, existing CWC shareholders are expected to own 7.21% of the LiLAC group, on a pro forma basis.
- Flow is a part of the CWC portfolio, after last year’s merger between Columbus International (Flow) and CWC.
Read the full press release from Liberty Media here and be sure to check back in with diGJamaica for more details on this potentially game-changing media takeover. Also, read 5 Facts- Liberty Global’s Potential Takeover of Cable & Wireless, outlining details pertinent to the talks between the companies that led to this deal.
Updated- 4:14 pm
With 5 additional facts on the deal and a link to Liberty Media’s official press release announcing the confirmed deal.
