Liberty Global have confirmed that they are to acquire Virgin Media in a cash & stock merger.
Deal Terms
- Virgin Media 2012 results (unaudited)
- Revenue $6.6 billion
- OCF $2.7 billion
- OCF margin 41%
Virgin Media shareholders will receive for each share:
- $17.50 in cash
- 0.2582 shares of Liberty Global Series A common stock
- 0.1928 shares of Liberty Global Series C common stock
Valuation
- $47.87 per Virgin Media share
- 24% premium to closing price
- Implied Virgin Media equity value of $16.0 billion & enterprise value of $23.3 billion
- Represents 8.8x 2012 OCF multiple
- Represents 7.0x 2013E OCF multiple, after adjusting for synergies & taxes
- Accretive to Free Cash Flow
Ownership
- Liberty Global shareholders expected to own 64%
- Virgin Media shareholders expected to own 36%
Path to completion
The transaction is subject to majority LGI & Virgin Media shareholder votes, regulatory approvals & customary closing conditions. The deal is expected to close in Q2 2013.
For full details see the Virgin Media Investor Call Presentation here.
USa, Englewood, CO & UK, London
Related articles
- Press speculation – John Malone’s Liberty Global is preparing to make a bid for Virgin Media Posted on February 5, 2013
- Scripps Networks Interactive and Virgin Media complete UKTV Transaction Posted on October 3, 2011
- BSkyB acquires Virgin Media Television Posted on June 6, 2010
