Liberty Global Launches LiLAC Tracking Stock
July 01 2015 - 4:00PM
Business Wire
- Advanced cable platforms
well-positioned to exploit organic growth potential, as well as
M&A opportunities across the region
- Trading will begin tomorrow, July 2,
2015, at 09:30 a.m. EDT
Liberty Global plc (“Liberty Global”) (NASDAQ: LBTYA, LBTYB and
LBTYK) today announced that it completed its previously announced
distribution of the tracking stock for its operations in Latin
America and the Caribbean (the “LiLAC Group”) to shareholders.
These ordinary shares will begin regular-way trading on July 2,
2015, at 09:30 a.m. EDT. The LiLAC Class A (LILA) and Class C
(LILAK) ordinary shares will trade on NASDAQ, and the LiLAC Class B
(LILAB) ordinary shares will trade on OTC Link. The Liberty Global
Class A, Class B and Class C ordinary shares will continue to
trade on NASDAQ under the symbols LBTYA, LBTYB and LBTYK,
respectively.
Mike Fries, CEO of Liberty Global, stated, “The launch of our
LiLAC tracking stock is an exciting event, which we believe will
enhance long-term equity value for shareholders. Our cable
operations in Chile and Puerto Rico are two of the most advanced
platforms in the region. Both businesses have consistently
delivered strong financial results and should continue to generate
mid- to high-single-digit rebased OCF growth going forward. LiLAC
is also uniquely positioned to exploit the highly fragmented
landscape characterized by low broadband and pay TV
penetrations.”
The LiLAC Group tracking stock forms a “pure-play” cable stock
focused on Latin America and the Caribbean, giving shareholders the
opportunity to invest directly in the region. The LiLAC Group
initially has attributed to it Liberty Global’s Chilean business,
VTR, the largest cable operator in Chile, as well as our 60%
interest in the largest cable company in Puerto Rico, Liberty
Cablevision. The entities comprising the LiLAC Group also have $100
million of cash provided by Liberty Global in order to provide
liquidity to fund, amongst other things, ongoing operating costs
and acquisitions. Following the completion of the Choice
acquisition on June 3, 2015, LiLAC now passes over 4 million homes,
serving approximately 3.4 million revenue generating units (“RGUs)1
and generating over $1.2 billion of annual revenue. For more
information please see the LiLAC Group presentation posted on June
30, 2015, in the presentations and webcasts section in the Investor
Relations section of our website www.libertyglobal.com.
Distribution of LiLAC Tracking Stock to Shareholders
At the close of trading today, July 1, 2015, Liberty Global
distributed, as a dividend (or a “bonus issue” under U.K. law), to
holders of its Class A, Class B and Class C ordinary shares as of
5:00 p.m. Eastern time on June 24, 2015 (the “record date”), one
share of the corresponding class of LiLAC Group ordinary shares for
each 20 Liberty Global ordinary shares held by each shareholder as
of the record date. We distributed approximately 12.6 million LILA,
0.5 million LILAB and 30.8 million LILAK shares in total. Cash will
be paid in lieu of fractional LiLAC Group ordinary shares.
Forward-Looking Statement
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements regarding our expected future financial
performance, including OCF growth; the impacts of the
implementation of the tracking stock structure, organic and
strategic growth prospects and other information and statements
that are not historical fact. These forward-looking statements
involve certain risks and uncertainties that could cause actual
results to differ materially from those expressed or implied by
these statements. These risks and uncertainties include the
continued use by subscribers and potential subscribers of our
services and their willingness to upgrade to our more advanced
offerings, our ability to meet challenges from competition, to
manage rapid technological change or to maintain or increase rates
to our subscribers or to pass through increased costs to our
subscribers, the effects of changes in laws or regulation, general
economic factors, our ability to obtain regulatory approval and
satisfy regulatory conditions associated with acquisitions and
dispositions, our ability to successfully acquire and integrate new
businesses and realize anticipated efficiencies from businesses we
acquire, the availability of attractive programming for our digital
video services and the costs associated with such programming, our
ability to achieve forecasted financial and operating targets, the
outcome of any pending or threatened litigation, our ability to
access cash of our subsidiaries and the impact of our future
financial performance, or market conditions generally, on the
availability, terms and deployment of capital, fluctuations in
currency exchange and interest rates, the ability of vendors and
suppliers to timely deliver quality products, equipment, software
and services, as well as other factors detailed from time to time
in our filings with the Securities and Exchange Commission,
including our registration statement on Form S-4 relating to the
issuance of the LiLAC shares and our most recently filed Forms 10-K
and 10-Q. These forward-looking statements speak only as of the
date of this press release. We expressly disclaim any obligation or
undertaking to disseminate any updates or revisions to any
forward-looking statement contained herein to reflect any change in
our expectations with regard thereto or any change in events,
conditions or circumstances on which any such statement is
based.
About Liberty Global
Liberty Global is the largest international cable company with
operations in 14 countries. We connect people to the digital world
and enable them to discover and experience its endless
possibilities. Our market-leading products are provided through
next-generation networks and innovative technology platforms that
connected 27 million customers subscribing to 56 million
television, broadband internet and telephony services at March 31,
2015. In addition, we served five million mobile subscribers and
offered WiFi access across over five million access points.
Liberty Global Group (“Liberty Global Group”), which is
primarily comprised of our European operations, is traded on the
NASDAQ Global Select Market under the symbols “LBTYA”, “LBTYB”, and
“LBTYK”. Liberty Latin America and Caribbean Group (“LiLAC Group”),
which includes our operations in that region, are traded under the
symbols “LILA”, “LILAB”, and “LILAK”. LILA and LILAK are traded on
the NASDAQ Global Select Market and LILAB is traded on OTC
Link.
Liberty Global Group's consumer brands are Virgin Media, Ziggo,
Unitymedia, Telenet and UPC. Our operations also include Liberty
Global Business Services and Liberty Global Ventures. LiLAC Group’s
consumer brands are VTR and Liberty. For more information, please
visit www.libertyglobal.com.
________________________________
1 All homes passed and RGU figures for Choice are as of February
28, 2015 and are based on information provided by Choice. The VTR
and LCPR homes passed and RGU figures are as of March 31, 2015.
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version on businesswire.com: http://www.businesswire.com/news/home/20150701006618/en/
Liberty GlobalInvestor
Relations:Oskar Nooij, +1 303 220 4218Christian
Fangmann, +49 221 8462 5151John Rea, +1 303 220 4238orCorporate Communications:Marcus Smith, +44
20 7190 6374Bert Holtkamp, +31 20 778 9800Hanne Wolf, +1 303 220
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