US-based cable giant Liberty Global is reportedly considering making a bid for Dutch cableco Ziggo.
NASDAQ-listed Liberty, which already owns rival Dutch operator UPC, is the only company that could afford Ziggo, Dutch newspaper De Telegraaf claimed…
US-based cable giant Liberty Global is reportedly considering making a bid for Dutch cableco Ziggo.
NASDAQ-listed Liberty, which already owns rival Dutch operator UPC, is the only company that could afford Ziggo, Dutch newspaper De Telegraaf claimed according to Reuters. The article stated that Ziggo’s advanced network makes it too expensive for strategic buyers.
Speaking at a presentation to analysts on Liberty’s fourth-quarter results today [23 February 2012], chief executive Mike Fries said it made sense for the company to explore opportunities in the Netherlands.
Replying to questions from analysts, he said: “It’s a big market – it’s one you should expect us to be looking at if a transaction like that were to become available”.
“But it’s my understanding they [Ziggo] are moving very aggressively and rapidly towards a public market listing or an IPO.”
Ziggo is reportedly readying itself for a postponed IPO, which the IFR stated will take place in March, although the company itself has declined to comment on the matter.
Last week, Dow Jones reported the cableco’s private equity owners Cinven and Warburg Pincus had mandated four extra banks as co-lead managers for the IPO: HSBC, Nomura, ABN Amro Bank and Rabobank.
According to IFR, Ziggo’s owners are likely to opt for a US-style listing process which would involve an initial float far smaller than originally intended, allowing owners to exit through a series of relatively large follow-ons.
The high cancellation rate of IPOs across Europe in 2011 was a catalyst for the decision, the report stated.
Plans for the 2011 IPO reportedly valued Ziggo – the product of a merger between three rival cablecos – at up to €7bn, with Cinven and Warburg expected to sell between 25% and 30% of shares. It is unclear whether this has changed.
Ziggo posted revenue of €1.5bn for 2011 – a 7.4% increase on the previous year.
Reports linking Liberty with Ziggo also circulated last year.
