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Liberty Global to acquire Unitymedia for EUR3.5bn

Liberty Global has entered into a definitive agreement to acquire 100 per cent of the share capital of Unitymedia, Europe’s third largest broadband cable operator, from its sole shareholder Unitymedia S.C.A, Luxembourg.

The terms of the agreement imply a total equity value for Unitymedia of EUR2.0bn and an enterprise value of EUR3.5bn.

Closing is expected to take place in the first half of 2010, subject to the requisite regulatory approvals.

Parm Sandhu, chief executive officer of Unitymedia, says: “This transaction marks an exciting new phase in Unitymedia’s development and brings significant benefits to our customers, employees and other stakeholders. Unitymedia is one of the strongest growth stories in European cable today. Over the past four years we have led the renaissance of German cable. We have initiated infrastructure competition, opened the market to dynamic new forces and built a powerful growth platform for up-selling and cross-selling our large, increasingly digital cable subscriber base to higher value-added triple play services. Our track record demonstrates the compelling consumer value of our offerings where our estimated market share of net broadband subscriber growth in our upgraded footprint reached over 70 per cent in Q3 2009.”

UBS Investment Bank acted as lead financial adviser to Unitymedia in the transaction. Unitymedia was also assisted by Morgan Stanley, Nomura, HVB and Latham & Watkins.

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