LONDON (Alliance News) - A deal has been reached for US cable company Liberty Global PLC to acquire Cable & Wireless Communications PLC in a deal that values the London-listed telecommunications company at about GBP3.60 billion, according to a statement on Monday.
The GBP3.60 billion value ascribed to Cable & Wireless, which has operations in the Caribbean and Central America, takes into account a 3.0 pence special dividend to be paid to the company's shareholders. The deal, which comes after the two companies in October confirmed they were in takeover talks, values Cable & Wireless at 81.04 pence per share.
Shares in Cable & Wireless closed up 0.1% at 73.54p on Monday in London.
The payment will consist of up to 31.7 million Liberty Global Class A ordinary shares, 77.5 million Liberty Global Class C ordinary shares, 3.6 million LiLAC Class A ordinary shares and 8.9 million LiLAC Class C ordinary shares, as well as the special dividend.
"The acquisition of Cable & Wireless represents a watershed moment for our recently created LiLAC platform. It will add significant scale and management depth to our fast-growing operations in Latin America and the Caribbean, while creating a new regional consumer and B2B powerhouse," Liberty Global Chief Executive Mike Fries said in a statement.
LiLAC consists of Liberty Global's operations in Latin America and the Caribbean.
"Upon completion, the combined business will serve 10 million video, data, voice and mobile subscribers, with leading positions across multiple markets," Fries added.
Phil Bentley, chief executive of Cable & Wireless, said: "Since we launched our new strategy two years ago, CWC has transformed itself into a leading regional quad play operator. The disposal of Monaco, the creation of our regional hub in Miami and the recent acquisition of Columbus accelerated our competitive positioning whilst at the same time generating significant value for shareholders and enhanced service levels for our customers."
"Liberty Global offers scale and world class capabilities and will be an outstanding custodian of our business, both for our people and our customers. The years ahead should bring new opportunities for further success, faster growth and enhanced customer benefits, built on the strong foundation we have created," Bentley added.
The deal requires the approval of shareholders and regulators.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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