Liberty Global’s valuation assesses the value per share for Telenet at €28 - €35. Liberty Global, which has been advised by Morgan Stanley, will include the details of the valuation in the prospectus provided to investors in the event the Intended Offer is launched.
Liberty Global continues to believe that the Offer Price represents a meaningful premium to its view on the intrinsic value of Telenet and a unique opportunity for the shareholders to monetize their entire investment at a time when the European cable sector is trading at a multi-year high.
The Offer Price represents:
- A premium of 23% over the mid-point DCF based valuation of €28.48 per share, 1 based on Telenet management’s latest projections at the time of Liberty Global’s announcement of the Intended Offer;
- A premium of 14% over the volume weighted average share price for the period of one month ended September 19, 2012; 2
- A premium of 17% over the volume weighted average share price for the period of six months ended September 19, 2012; 2
- 15.7x 2012E EBITDA - Capex 3 implied multiple, which is a significant premium to the corresponding metric of 13.5x 4 of Ziggo N.V. (“Ziggo”) as of September 19, 2012; and
- 9.1x 2012E Adjusted EBITDA 3 implied multiple, which is a meaningful premium to the average of certain comparable quoted cable operators 5 of 8.4x 4 2012E EBITDA as of September 19, 2012.
Further information regarding the justification of the Offer Price and its attractiveness to Telenet shareholders will be included in the prospectus of the Intended Offer, to be filed for approval with the Belgian financial services and markets authority.Whether or not the Intended Offer will eventually be made as a formal binding offer depends on a number of conditions, including overall financial market conditions and Liberty Global’s ability to raise satisfactory financing. In the event that Liberty Global decides not to proceed with a formal offer, Liberty Global will immediately issue a further public announcement to that effect. If Liberty Global decides to proceed with the Intended Offer, a prospectus (containing the independent expert report) and a response memorandum (prepared by the independent directors of the board of Telenet) will be filed for approval with the FSMA.