This is part of a wider initiative to increase the parent group’s value
Liberty Global gained 100% ownership of Telenet Group Holding during the simplified squeeze-out period via its indirect wholly-owned subsidiary, Liberty Global Belgium Holding. The squeeze-out period opened on 22 September 2023 and closed on 13 October 2023. During this time, it was compulsory for minority shareholders to sell their holdings in the joint-stock company.
Payment of the offer price for the Telenet shares tendered during this period was €21.00 per share less the €1.00 gross dividend approved by Telenet’s ordinary general meeting of 26 April 2023. Payment will occur on 19 October 2023.
Telenet’s shares were delisted from Euronext Brussels on 13 October at the close of trade. Liberty has set a target of buying back at least 15% of its shares in another initiative to increase the group’s value.
Clawing back value
The activity around Telenet is just part of a group-wide move by Liberty Global to increase its value to shareholders including through reducing complexities which Fries argues suppresses share price.
At its Q2 earnings report in July, Liberty Global’s CEO Mike Fries (pictured), said “nothing is off the table…to realise the true value of the parent company”. He did not rule out relisting Telenet after gaining complete ownership then delisting it. It is possible that it could be relisted in combination with another opco.
Fries promised there would be particular focus on VodafoneZiggo, the Dutch operator it has jointly owned with Vodafone since 2016.
Staying on track
In July Fries acknowledged that increased prices – 4% at the low end in Switzerland (Sunrise) and up to 17% at the top end in the UK (Virgin Media O2), had resulted in a nett loss of subscribers. Despite this, he did not revised guidance for the year and expected to gain the benefits from increased prices in the second half of the year.
Liberty Global is also moving its HQ to Bermuda for legal reasons, rather than tax-motivated ones, according to the company, and to gain more flexibility.
Talking about assuming 100% ownership of Telenet and its delisting, Fries commented, “We’re delighted to be taking full ownership of Telenet, a move that will benefit not only Telenet customers but also Liberty Global stakeholders and shareholders as we continue to simplify our business.
“Liberty Global has been a committed, majority shareholder in Telenet since 2007 and we fully support management’s exciting growth plans for the business. Under full Liberty Global ownership, Telenet will now undoubtedly be on a stronger footing to further grow the business, modernize its network and cement its preeminent position in Belgium for the long-term.”