Liberty Global and Searchlight Complete Choice Acquisition
June 03 2015 - 11:45AM
Business Wire
Leading Cable Operator in Puerto Rico to Leverage Superior
Network and Innovation Expertise
Liberty Global plc (“Liberty Global”) (NASDAQ: LBTYA, LBTYB and
LBTYK) today announced that, following regulatory approval, it has
consummated its previously announced acquisition of 100% of the
parent of Puerto Rico Cable Acquisition Company Inc., dba Choice
Cable TV (“Choice”), the second largest cable and broadband
services provider in Puerto Rico. The combination of Choice’s
operations with those of Liberty Cablevision of Puerto Rico LLC
(“LCPR”), which is 60% owned by Liberty Global and 40% owned by
funds managed by Searchlight Capital Partners, L.P., creates the
largest cable operator on the island with over one million homes
passed1, serving approximately 750,000 revenue generating units
(“RGUs)1 and generating over $390 million of annual revenue.
As previously disclosed, the purchase price of approximately
$272.5 million before transaction costs and other adjustments
represents a multiple of approximately 6 times our estimate of
Choice’s 2015 full-year operating cash flow, as customarily defined
by Liberty Global and adjusted for the projected annual impact of
synergies following full integration. The transaction was largely
funded through incremental debt borrowings of approximately $267.5
million at the combined Puerto Rican business, and equity
contributions from Liberty Global and Searchlight of $10.2 million
and $6.8 million, respectively.
Liberty Global’s 60% ownership interest in Choice will be
attributed to the “LiLAC Group”, which will track the performance
of Liberty Global’s operations in Latin America and the
Caribbean.
Mike Fries, CEO of Liberty Global, stated, “We are thrilled with
the completion of this acquisition, which will benefit Choice
customers, drive scale efficiencies across Puerto Rico and further
enhance long-term value of the LiLAC Group. The combination of
organic growth and consolidation opportunities throughout the
region makes LiLAC a unique pure-play investment opportunity and we
look forward to the trading of LiLAC Group shares on July 2.”
Eric Zinterhofer, co-founder of Searchlight, said, “The
acquisition of Choice completes island-wide cable consolidation in
Puerto Rico, which enhances LCPR's ability to invest in products,
marketing and end-to-end business solutions. LCPR will continue to
offer leading broadband speeds, innovative video packages and
attractively priced service bundles, and we welcome serving the
customers of Choice. We would also like to thank Steve Simmons and
Jim Holanda of Choice for being excellent stewards of the
business.”
Forward Looking Statements
This press release contains forward-looking statements,
including statements regarding our expectations with respect to the
combined Choice and LCPR operations, the expected performance of
the LiLAC Group 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 satisfaction of certain
conditions to the creation and distribution of the tracking stock,
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 Liberty Global’s filings with the SEC including Liberty Global’s
most recent Forms 10-K and 10-Q. These forward-looking statements
speak only as of the date of this 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 the expectations with regard thereto or any
change in events, conditions or circumstances on which any such
statement is based, except to the extent required by applicable
law.
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's consumer brands are Virgin Media, Ziggo,
Unitymedia, Telenet, UPC, VTR and Liberty Cablevision. Our
operations also include Liberty Global Business Services and
Liberty Global Ventures. For more information, please visit
www.libertyglobal.com.
About Searchlight Capital Partners, L.P.
Searchlight is a global private investment firm with offices in
New York, London and Toronto. Searchlight seeks to invest in
businesses where its long term capital and strategic support
accelerate value creation for all stakeholders. For more
information, please visit www.searchlightcap.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 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/20150603006164/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
6678orSearchlight Capital Partners, L.P.Emily Melchior + 1
212 293 3717
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