Broadband service provider Liberty Global Inc. (LBTYA, LBTYB, LBTYK) reported acquiring 25.3 million shares in Ziggo N.V. from Barclays Capital Securities Ltd. at 25 euros per share, for a total investment of around 632.5 million euros. Therefore, Liberty Global owns 12.65% of Ziggo, based on the outstanding shares as of December 31, 2012.
The company considers this minority stake purchase in Ziggo as an attractive opportunity to make a strategic investment in a market where it already enjoys a sizeable presence via. its UPC Netherlands unit. Also, the purchase price is financially attractive given the stock's approximate 7.4% dividend yield, which is implied by Ziggo's expectation that it would pay 370 million euros of dividends in 2013, according to the company.
Liberty Global said it would fund the transaction with a non-recourse margin loan and existing liquidity. As the transaction does not result in Liberty Global obtaining a controlling interest in Ziggo, no regulatory approvals are required.
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