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Virgin Media Agrees to $23 Billion Takeover by Liberty Global

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The US cable TV operator, Liberty Global has made an agreed takeover bid for UK based Virgin Media, valuing the company at around USD23.3 billion.

The merged company would end up with 25 million customers in 14 countries. After the deal, roughly 80% of Liberty Global's revenue will come from five countries - the UK, Germany, Belgium, Switzerland and the Netherlands.

The merger is expected to generate savings of around USD180 million per year.

Mike Fries, President and CEO of Liberty Global, said: 'Adding Virgin Media to our large and growing European operations is a natural extension of the value creation strategy we've been successfully using for over seven years."

As part of the deal, Virgin Media shareholders will own approximately 36% of the merged company and have approximately 26% of the voting rights. Just under $6 billion will also be paid to Virgin Media shareholders.

In addition, the enlarged company will move its holding company from Delaware, USA to the UK and will be listed on the London stock exchange - although it will retain its US listing and reporting requirements as well.

Virgin Media will continue to operate under the Virgin Media brand in the UK.

US billionaire John Malone controls in excess of 35% of the voting power of Liberty Global, and he has committed to support the transaction in his capacity as a shareholder.

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Tags: liberty global  virgin media  UK