Despite the downsized capital increase, Sunrise’s largest shareholder Freenet continues to reject the acquisition of UPC Switzerland from Liberty Global.
“We called for an improvement of the deal in August. If this is the only change, it will not affect our decision to vote against the deal,” a Freenet spokeswoman told Broadband TV News. “It is now clear that the deal as such has lost its strategic logic as 5G deployment, including internal coverage, takes place much faster than expected.”
“Sunrise published its 5G offer including TV and internet access on September 18 and even in Weko’s statement to approve the deal without conditions, they stated that ‘other’ technologies will boost competition and lower prices,” the Freenet spokeswoman added. “Furthermore, UPC has now lowered its retail prices from CHF 129 to CHF 89 and from CHF 99 to CHF 59 respectively, dramatically reducing its own future value.”
By reducing the capital increase for the planned takeover of UPC Switzerland from CHF4.1 billion to CH 2.8 billion, Sunrise aims to gain green light for the transaction from critical shareholders such as Freenet.
The extraordinary general meeting at which the shareholders are to decide on the deal is scheduled for October 23, 2019.