[July 01, 2015] |
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Liberty Global Launches LiLAC Tracking Stock
Liberty Global (News - Alert) 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 (News - Alert) 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 (News - Alert), 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.
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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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150701006618/en/
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