Liberty Global has reached an agreement to sell its 37.8% stake in Jupiter Telecommunications Co (JCom) to KDDI Corporation for US$4bn.
Liberty Global is being advised by JPMorgan. KDDI is being advised by UBS.
KDDI is funding the deal through a mixture…
Liberty Global has reached an agreement to sell its 37.8% stake in Jupiter Telecommunications Co (JCom) to KDDI Corporation for US$4bn.
Liberty Global is being advised by JPMorgan. KDDI is being advised by UBS.
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 JCom’s EBIDTA.
Prior to closing, Sumitomo Corporation’s interest in Super Media will be redeemed for the JCom shares attributable to it and LGI will acquire the minority interests in one of the subsidiaries to be sold.
Mike Fries, President and Chief Executive Officer of Liberty Global, said, “Exiting the Japanese market at a substantial premium allows us to redirect our capital into more strategic consolidation opportunities in our core markets as well as our ongoing stock buyback initiatives.”
The deal is expected to close in February and is subject to regulatory approval.
JCom, a cable TV operator, was founded in 1995 as a JV between Japanese trading house Sumitomo and Liberty Media.
