Liberty split in cable shake-up
Thursday September 2, 4:00 am ET
Financial Times
Tim Burt in New York
Liberty Media, the US media investment company led by entrepreneur John Malone, is splitting itself in two by spinning off its international operations into a new company worth about $9bn.
The company yesterday announced plans to create Liberty Media International (LMI), listed on Nasdaq, with assets including J-Com, Japan's leading cable TV, broadband and telephone player, and UnitedGlobalCom, the European cable and high-speed internet group.
Shares in the company, which will be distributed to existing Liberty shareholders on a tax-free basis, are expected to come to market with a launch price of $30-$40 a share.
Robert Bennett, Liberty president and chief executive, said LMI would be the largest cable company outside the US with 13.5m customers for its international cable, broadband and telephony services.
"We will expand LMI's footprint through acquisitions and strategic alliances in Europe and Japan," he added.
The new company is expected to begin trading with about $3.5bn of debt, although its balance sheet will be strengthened by a rights issue shortly after it comes to market.
John Malone, Liberty's veteran chairman, will become LMI chief executive.
Yesterday, Mr Malone said the spin off would simplify the Liberty structure and create an acquisition currency for international deals. "It allows the market to focus on non-international assets while freeing the international company to be more aggressive on how its balance sheet ant its equity," he said.
The announcement coincided with news that UnitedGlobalCom, the Liberty-controlled cable affiliate, has agreed to acquire Noos, France's biggest cable TV operator, from French utility group Suez in a deal valuing the company between EU508m-EU660m. |
