European private equity firm Cinven has sold 10.8 million ordinary shares of Ziggo NV, the largest cable operator in the Netherlands, at a price of EUR23.50 per share, realising EUR255m of gross proceeds.
Following the listing in March 2012 and this sale of shares, Ziggo will have generated total proceeds of EUR569m for the Fourth Cinven Fund and a total money multiple of 2.7x including Cinven’s remaining shareholding in the company.
At close of trading on 30 July 2012, Ziggo ordinary shares were trading at a 34 per cent premium to the issue price. On completion of this transaction, Cinven will retain a 22 per cent shareholding in Ziggo.
A total of 29 million ordinary Ziggo shares were placed as a result of this transaction, incorporating those owned by Cinven, Warburg Pincus and certain affiliated co-investors (the “selling shareholders”), resulting in total gross proceeds of EUR681.5m. After the completion of the transaction, the selling shareholders will own a combined 117 million shares in Ziggo, representing approximately 58 per cent of the capital. Cinven and Warburg Pincus are subject to a lock-up period of 90 days following the completion of the transaction.
In March 2012, Cinven completed the successful IPO of Ziggo on the NYSE Euronext Amsterdam. Cinven led the original investment in Ziggo in 2006 and retained a 27 per cent shareholding in the Company post-IPO.
On 20 July 2012, Ziggo reported its Q2 2012 results with revenues up 6.3 per cent to EUR386.5m year on year and adjusted EBITDA up 5.9 per cent to EUR219.2m on the same basis.
Leverage was reduced to 3.54x as at 30 June 2012 compared to 3.87x at 31 December 2011 and 4.20x at 30 June 2011.
David Barker (pictured), partner at Cinven, says: “Since listing on the NYSE Euronext Amsterdam, Ziggo has continued to perform well and has recently delivered robust Q2 results with strong EBITDA growth and high cash conversion to further reduce leverage. Ziggo continues to invest in the development of new services and products and Cinven retains a 22 per cent stake in the business underlining our belief in its future potential.”
