Thread: Liberty Global in talks to merge Virgin Media with O2
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Old 07-05-2020, 07:15   #24
1andrew1
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Re: Liberty Global in talks to merge Virgin Media with O2
Quote:
Originally Posted by newapollo View Post
I wonder if this will have any effect on the proposed switch to Vodafone for mobile due late next year
Quote:
Originally Posted by 1andrew1 View Post
We also don't know 100% if VM Ireland is included in the VM-O2 merger as that is a market O2 has withdrawn from.
OK, we now have some answers.
1) VM's mobile customers will move to the O2 network
2) VM Ireland is not part of the deal.

Details announced today at https://2zn23x1nwzzj494slw48aylw-wpe...Operations.pdf

Extracts from press release:
Quote:
• Attractive valuation for both businesses, with O2 valued at £12.7 billion and Virgin Media valued at £18.7 billion, both on a total enterprise value basis.
• O2 to be transferred into the joint venture on a debt-free basis, while Virgin Media to be contributed with £11.3 billion of net debt and debt-like items
• Both parties expect to receive net cash proceeds at closing following a series of recapitalizations that will generate £5.7 billion in proceeds for Telefonica and £1.4 billion for Liberty Global (after an equalization payment to Telefonica of £2.5 billon)
• Joint venture will target ongoing net leverage of 4.0-5.0x, with proceeds from any future freecash flow generation and financing to be distributed equally between Telefonica and Liberty Global
• The transaction is expected to close around the middle of 2021 and is subject to regulatory approvals, consummation of the recapitalizations, and other customary closing conditions
•The JV intends to distribute available cash to the shareholders periodically and is expected to undertake periodic further recapitalizations, subject to market and operating conditions, to maintain
its 4.0x-5.0x target net leverage ratio
•Telefonica is hosting a conference call on Thursday, May 7, 2020 for analysts and investors, which will start promptly at 10.00 a.m. (London time)
•The transaction is subject to regulatory approval. Liberty Global and Telefonica have already undertaken preparatory work on the required competition filing and will formally request approval from the appropriate authority in due course.
BBC news item now at: https://www.bbc.co.uk/news/business-52570593
Last edited by 1andrew1; 07-05-2020 at 07:34.
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