The possible acquisition of Liberty Global’s Swiss cable operator UPC Schweiz by Swiss telecommunications company Sunrise Communications Group is further taking shape.
Sunrise confirms in a statement that it is in “advanced discussions” with Liberty Global regarding a possible acquisition of UPC Switzerland for an enterprise value of CHF6.3 billion (€5.5 billion).
In early February 2019, Sunrise already confirmed that it is holding takeover discussions with Liberty Global regarding its wholly owned Swiss business, but it is the first time that Sunrise has mentioned financial details of the possible transaction.
Sunrise stresses that, as previously stated, it will only pursue a transaction if it is strategically compelling and demonstrably value creative for its shareholders, adding that in the event of a transaction, Sunrise is committed to a prudent capital structure and to retaining its existing progressive dividend policy.
No final decision has been made, states Sunrise. A further announcement will be made if and when appropriate, according to the company.
Liberty Global has been favourable towards consolidation in the Swiss market with its total of four full service providers, and discussions with Sunrise regarding a combination of their assets in Switzerland have been going on for a while.
Exiting Switzerland would be in line with Liberty Global’s recent moves to sell its cable subsidiaries in Austria, in Germany and Eastern European countries and its DTH satellite operations in Central and Eastern Europe.