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.