Liberty Global has completed its acquisition of Vodafone’s 50% stake in VodafoneZiggo.
As a result of the acquisition, a new Benelux connectivity company serving 13 million customers has been created, Ziggo Group, generating €6.6 billion in revenue.
The move is part of Liberty’s plans to expand its telecoms portfolio and create a regional powerhouse spanning the Netherlands, Belgium and Luxembourg.
Don’t miss the stories shaping the future of mobile technology.
Subscribe to Mobile Europe’s newsletter – delivered twice a week.
As a result, Ziggo Group will bring together Liberty Global’s interests in VodafoneZiggo in the Netherlands and Telenet in Belgium and Luxembourg, with Liberty Global retaining a 90% ownership stake and Vodafone becoming a 10% shareholder.
Meanwhile, as part of the transaction, Vodafone received approximately €1 billion in cash alongside its equity holding in the newly formed group.
Alongside this, Liberty Global has revealed it has already begun preparations for a planned Amsterdam listing of Ziggo Group in 2027.
The company intends to spin off its 90% holding to Liberty Global shareholders, with the proposed transaction expected to be tax-free for US shareholders.
Meanwhile, VodafoneZiggo CEO, Stephen van Rooyen has been appointed CEO of Ziggo Group, while Sunrise CFO Jany Fruytier will take on the role of CFO when the company begins operations in September.
Ziggo Group is progressing with between €1.2 billion and €1.4 billion ($1.4 billion- $1.6 billion) of planned asset disposals.
These include the sale of 50% of Telenet’s stake in Wyre, VodafoneZiggo’s tower portfolio and selected property assets in Belgium and the Netherlands.
Proceeds from these disposals will be used to reduce debt, the company revealed.
Mike Fries, Liberty Global Chairman and CEO, said: “Ziggo Group is already the most important telecommunications company in the Benelux region, with the scale to deliver the highest quality services to residential and enterprise customers and the ambition to create long-term value for shareholders. Local investors will soon have the opportunity to invest in a regional champion with strong customer propositions and a compelling outlook for free cash flow generation and dividends over time.
“I’m also delighted that Vodafone will remain a 10% shareholder in the Ziggo Group. They have been an outstanding partner for nearly a decade and we will always maintain a strong relationship with Margherita and her team.”
Rooyen, added: “Today marks the start of Ziggo Group. For customers, nothing changes: they keep the same trusted brands they know today. Behind the scenes, though, we’re creating a stronger company with greater ability to invest, innovate and build for the future.
“Our ambition is simple: combine the strength of a larger group with the focus and entrepreneurial spirit of strong local businesses.”
IN RELATED NEWS
