Liberty Global Subsidiary Telenet To Acquire BASE In EUR1.325 Bln Cash Deal

(RTTNews) - Liberty Global Plc. (LBTYA, LBTYB, LBTYK) Monday said its subsidiary Telenet Group Holding NV has entered into a definitive agreement to acquire BASE Company NV, the third-largest mobile network operator in Belgium, in an all cash transaction valuing BASE at 1.325 billion euros.

Liberty Global said this acquisition would enable Telenet to compete more effectively in a mobile market with significant growth opportunities, while offering a full range of fixed and mobile services to the benefit of consumers and businesses in Belgium.

This represents a purchase price multiple of 4.2 times BASE's estimated 2015 OCF, as adjusted for approximately 145 million euros of projected annual run-rate opex synergies.

When the enterprise value is increased to include approximately 240 million euros of projected one-off investments and integration costs, the synergy adjusted multiple increases to 5.0 times.

According to Liberty Global, the acquisition of BASE, with nearly 3.3 million mobile subscribers and adjusted revenue of 690 million euros for 2014, fits very well in its mobile strategy in Belgium, as this would allow Telenet to continue to provide ubiquitous connectivity for its and BASE's customers.

Telenet plans to finance the acquisition of BASE through a combination of 1.0 billion euros of new debt facilities and existing liquidity.