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Liberty Global sells Jupiter Telecommunications stake to KDDI

Last updated: 13:57 25 Jan 2010 GMT, First published: 14:57 25 Jan 2010 GMT

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Liberty Global (NASDAQ: LBTYA/LBTYB/LBTYK) has agreed to sell its 37.8% interest in Jupiter Telecommunications ("J:COM") to KDDI Corporation, the second largest wireless operator in Japan.


As part of the deal, Liberty Global will retain the right to receive the anticipated final 2009 dividend of JPY 490 per share attributable to its interest in J:COM.  Liberty expects the to report gross proceeds of $4 billion on the transaction.


“This would imply a transaction value on LGI's attributable 2.6 million J:COM shares of approximately JPY 140,000 per J:COM share, representing an approximate 65% premium to J:COM's closing share price on January 22, 2010,” Liberty Global noted. “The transaction represents an enterprise multiple of approximately 8.3 times J:COM's September 30, 2009 last twelve months consolidated operating cash flow, as customarily defined by Liberty Global.”


Liberty Global has also agreed to repay a US$833 million credit facility.


Mike Fries, President and Chief Executive Officer of Liberty Global, said, "Our investment in J:COM and our partnership with Sumitomo over the last 15 years have both been extremely successful and gratifying. The J:COM management team and, in particular Liberty Global executives Miranda Curtis and Graham Hollis, have created a world class operation and substantial value for our shareholders. While we pride ourselves on being long-term operators, we have also demonstrated a disciplined and opportunistic approach to rebalancing our business interests globally. 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."

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