Liberty Global to Collect $27 Billion from Asset Sales


Apr. 16 2019, Published 7:10 a.m. ET

Vodafone deal to net over $20 billion for Liberty

Liberty Global (LBTYA) is on track to collect close to $27 billion from asset sale transactions with Vodafone (VOD) and Sunrise Communications, a Swiss telecoms provider. Liberty last year struck a deal to sell its cable operations in Germany and Eastern Europe to Vodafone for 18.4 billion euros ($20.8 billion). Liberty and Vodafone are expecting to receive regulatory approval for their deal by the middle of the year to allow them to close the transaction.

In February this year, Liberty announced that it had reached an agreement to sell its Swiss operations to Sunrise Communications, one of the leading telecoms providers in Switzerland. Liberty will receive $6.3 billion in the transaction with Sunrise.

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Liberty returned $2.0 billion to shareholders in 2018

Together, the asset sale transaction with Vodafone and Sunrise will net around $27 billion for Liberty. Liberty exited 2018 with $1.5 billion in cash reserves. The company will see a significant boost to its cash reserves upon closing of the deals with Vodafone and Sunrise. In addition to reinvesting cash in the business, Liberty also uses its cash reserves to return value to its shareholders. In 2018, Liberty returned $2.0 billion to its shareholders through stock repurchases.

Liberty made $25 million profit

Liberty made a profit of $25.1 million on revenue of $2.9 billion in the fourth quarter, which ended in December. Comcast (CMCSA), Dish Network (DISH), and Charter Communications (CHTR) made profits of $2.5 billion, $337.1 million, and $296 million in the December quarter. Altice USA (ATUS) made a profit of $213.9 million in the December quarter.


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