Liberty Global makes Sunrise Communications acquisition bid | Major Businesses | Business
By continuing to use this site you consent to the use of cookies on your device as described in our privacy policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them. [Close]
Turning completely on its head its original plan, cancelled in December 2019, to sell its subsidiary UPC Switzerland to Sunrise Communications Group, Liberty Global is not to buy the Swiss operator.
Sunrise Liberty 13Aug2020
The long-drawn saga began in February 2019 when Liberty announced that it had reached a binding agreement with Sunrise’s board of directors to sell UPC. The proposed transaction was valued at CHF 6.3 billion ($6.3 billion) and expected to close prior to year-end 2019, will create what Liberty and Sunrise said would have been the leading converged challenger in the Swiss market with scale across all elements of the quad play bundle. However the deal never gained full shareholder approval and in December 2019 Liberty terminated discussions regarding the combination of the firms.

But now, Liberty Global has turned the deal on its head and has made an all cash public tender offer for all publicly held shares of Sunrise at a price of CHF110 per share, placing a value of CHF5.0 billion on Sunrise’s equity and representing a total enterprise value of CHF6.8 billion.

In outlining its bid, Liberty said the deal would create the leading national converged challenger in Switzerland and that the combined business would have CHF3.1 billion in revenue from 2.1 million mobile post-paid subscribers, 1.2 million broadband subscribers and 1.3 million TV subscribers. This is approximately 30% market share in each segment.

In addition Liberty believes that after a full acquisition of Sunrise, the combined business would be strongly positioned to continue its network roll-out including 5G and future technologies, supporting a range of new and enhanced products and services. This would include the integration of UPC’s gigabit network, covering around 75% of homes, with Sunrise’s existing FTTH partnerships covering over 30% of homes, will ensure that 90% of Swiss households have access to 1 gigabit broadband speeds by 2021, with a clear roadmap to enable up to 10Gbps over time.

Looking at what he combination of the two companies would mean, Liberty Global CEO Mike Fries said the “powerful” combination of 5G wireless and gigabit broadband for the two providers would will digital investment at a time when connectivity has never been more essential. “Fixed-mobile convergence is the future of the telecom sector in Europe, and now Switzerland will have a true national challenger to drive competition and innovation for years to come,” He said. “We look forward to welcoming Sunrise employees to the Liberty and UPC family and congratulate them and the board on their success.”