UCOMA/Liberty Media buy French cable company
UCOMA Signs Noos Purchase Agreement
DENVER, March 15 /PRNewswire-FirstCall/ --
UnitedGlobalCom, Inc. ("UGC" or the "Company") (Nasdaq: UCOMA) and the French SUEZ group announced today that they have signed a share purchase agreement regarding the sale of Noos, the largest French cable operator, from SUEZ to UGC's French holding company.
The parties have also signed a shareholders agreement governing their future cooperation. SUEZ is to become a 20% shareholder in UGC's French holding company, which includes its existing UPC France operations. The transaction is still subject to regulatory approvals.
The transaction values the enterprise at 7.25 times annualized 2004 EBITDA at closing, with a floor price of EUR 508 million, below which UGC would not have to close, and capped at a maximum price of EUR 660 million. On a
combined basis, UGC's French holding company would have approximately 1.8 million service subscribers and revenue of approximately EUR 400 million based on the results for the fiscal year-ended 2003.
It is expected that UGC's French operations will create a platform for further growth and innovation and the scale needed to effectively compete in the French market. It provides significant opportunities to modernize and leverage the current cable networks, technology operations and back-office systems and will accelerate the introduction of new and innovative products and services.
Mike Fries, President and Chief Executive Officer of UGC said, "The acquisition of Noos fits nicely into our strategic plans. Based largely in Paris, Noos has successfully penetrated the digital television and high-speed Internet market and is poised for continued growth in these products. When combined with our existing French operations, we expect to realize significant scale, network and operating benefits. And the purchase price at 7.25 times run-rate EBITDA is appropriate. We look forward to adding Noos to our broadband platform in Europe."
The UGC group was advised by TD Securities, a subsidiary of The Toronto-Dominion Bank, and Banc of America Securities, a subsidiary of Bank of America Corporation on this transaction.
About UnitedGlobalCom:
UGC is the leading international broadband communications provider of video, voice, and Internet services with operations in numerous countries. Based on the Company's operating statistics at December 31, 2003, UGC's networks reached approximately 12.7 million homes passed and 9.2 million RGUs, including approximately 7.5 million video subscribers, 733,000 voice subscribers, and 924,200 high speed Internet access subscribers. |
