Liberty Global strikes C&WC Plc deal

Cable & Wireless HQ

Cable & Wireless Communications Plc (“CWC”) today announced that it has reached agreement on the terms of a recommended acquisition for the entire issued share capital of CWC by Liberty Global. The Recommended Offer delivers 86.821 pence per share to free float shareholders comprising shares in Liberty Global and a 3 pence per share Special Dividend and represents a premium of approximately 50 per cent, CWC said.
John Malone’s Liberty Global Plc agreed to buy Cable & Wireless Communications Plc in a cash-and-stock transaction valued at 3.5 billion pounds ($5.3 billion). Including the Special Dividend, the transaction values CWC at approximately $8.2 billion, including debt CWC Plc said in a release on the deal. The transaction is expected to complete by the calendar second quarter of 2016.
“The deal represents a multiple of 10.7 times Cable & Wireless Communications’ adjusted annual earnings before interest, depreciation, taxes and amortization, (EBITDA) after taking into consideration cost synergies, according to a statement. Cable & Wireless’ shareholders will get a special 3 pence a share dividend at the deal’s close,” Bloomberg Business reported.
The report did not indicate what is planned with the Jamaican company Cable & Wireless Jamaica with nearly 20 percent minority ownership. IC Insider.com Has earlier suggested that the local operation could be valued around $3 using (EBITDA) measure.

Comments

R.L. says

November 23, 2015 at 5:40 pm

Thank you for your insight. As for me, my interest in LIME shares began from seeing the improved results each quarter. The announcement of a possible takeover at a higher price is a bonus for me. Once again thank you for replying to my query.

regards,
R.L.
R. L. says

November 22, 2015 at 1:26 pm

Dear ICiNsider,

Your insights have over the years proven to be spot on. I appreciate your commentary and views.
Now regarding this deal with C&W and Liberty Global. The deals seems a little complicated. In your valued opinion, what does this deal mean so far to the Jamaican Ordinary Shareholder?

R.L.
- IC Insider.com says
  
  November 23, 2015 at 11:52 am
  
  That is unclear so far. What is known is that Jamaican investors have been attracted to the stock in larger numbers than before it was announced. We posted a story on it shortly after the first news broke to give some indication of a possible valuation if the minority shares were to be acquired. Investors in our view should be looking at the improved performance of the company which suggest profits in 2016/17 onwards as the focus and not pay too much for the stock. If a takeover comes at a higher price then so be it.