Liberty Global has completed the sale of its 37.8% stake in Japan’s Jupiter Telecommunications (J:COM).
The cable operator announced that KDDI Corporation, the second largest operator in the Japanese mobile market would acquire the stake for…
Liberty Global has completed the sale of its 37.8% stake in Japan’s Jupiter Telecommunications (J:COM).
The cable operator announced that KDDI Corporation, the second largest operator in the Japanese mobile market would acquire the stake for approximately Y362bn (US$4bn) in cash.
Liberty said that is entitled to receive the anticipated final 2009 dividend of Y490 per share attributable to its interest in J:COM that is expected to be approved at the March 2010 J:COM shareholders meeting. Including both the proceeds received upon the sale and the anticipated dividend on its attributable 2.6 million shares, Liberty Global expects to realise gross proceeds of approximately Y363 billion (US$4bn at the applicable rate).
KDDI is advised by UBS, while JPMorgan is advising Liberty Global.
KDDI is funding the deal through a mixture of equity and debt. The investment will allow KDDI to reach over 3 million households for phone services without having to rent fixed-line networks.
Liberty Global is undertaking the transaction by selling its subsidiaries – LGI/Sumisho Super Media LP – that hold its interest in JCOM.
According to Liberty, the deal, priced at JPY140,000 per JCOM share, represents a premium of 65% vis a vis the firm’s closing share price on January 22 2010. The transaction represents an enterprise multiple of approximately 8.3 times J:COM’s EBIDTA.
