Liberty Global (NASDAQ:LBTYA) has announced that it plans to launch a voluntary and conditional public takeover bid to take out minority shareholders in Telenet Group through its wholly-owned subsidiary, Liberty Global (NASDAQ:LBTYA) Belgium, sending Telenet’s shares more than a third higher.
The broadband, video and mobile communications services company explained that it has been the controlling shareholder of Telenet since February 2007, and currently owns just over 59% of Telenet’s outstanding issued share capital. Telenet owns 3.1% of the outstanding issued share capital in treasury.
The intended offer would be an offer in cash at €22 per share, a premium of 59% compared to Telenet’s closing price on March 15, 2023, and a 52% premium to its volume-weighted average trading price in the preceding month.
Telenet’s shares were up 39% at €21.16 following news of the proposed transaction.
“We believe an offer of €22 per share provides a good opportunity for Telenet shareholders to monetize their investment at an attractive premium,” Liberty Global (NASDAQ:LBTYA) CEO Mike Fries said in a statement. “We welcome the unanimous decision of Telenet’s board of directors to support and recommend this offer. We are proud of how Telenet has evolved in recent years, and we are fully committed to Belgium and all the company’s stakeholders.”
Liberty Global noted that Telenet’s board of directors will provide its formal opinion in a response memorandum.
If Telenet’s ordinary general meeting on April 26 approves the payment of a €1 per share gross dividend as proposed by Telenet’s board and the ex-dividend date of May 3 2023 falls before the date of payment of the offer price, Liberty Global said the offer price per share will be reduced to reflect that.
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