Vodafoneziggo Shareholder Agreement

As explained in Liberty Global FY19`s annual report, each vodafoneZiggo shareholder has had the right to initiate an IPO since December 31, 2019. It is also possible for the other shareholder to sell shares as part of the IPO on a pro rata basis. `Subject to certain exceptions`, the shareholders` agreement prohibits the transfer of shares in the joint venture to third parties until 31 December 2020. Thereafter, this restriction does not apply. Despite each shareholder`s apparent ability to trigger an IPO, Bracken said he didn`t want to “get out of step” with Vodafone, which he called a “wonderful partner.” Bracken spoke at a UBS Global TMT virtual conference – transcribed by CQ FD Disclosure – and made no secret of his desire to list the Dutch joint venture. Charles Bracken, Chief Financial Officer (CFO) of Liberty Global, praised the management team of VodafoneZiggo, its 50:50 joint venture (JV) with Vodafone in the Netherlands. “VodafoneZiggo performed incredibly well and showed revenue growth as well as cash flow growth despite the challenges of the pandemic,” he said. We welcome comments that add value to the discussion. We try to block comments that use offensive language or appear spam, and our writers frequently review comments to make sure they are appropriate. If you see a comment that you deem inappropriate for discussion, you can bring it to our attention by using the links to report abuse. Since the comments are written and submitted by visitors to the Telecompaper website, they do not represent the opinion of Telecompaper in any way.

Bracken, which is getting closer to its valuation problem, said VodafoneZiggo has “over-indexed” the sector in terms of revenue growth and pursued its own cost-cutting plans. In announcing its financial results for the quarter ended September 30, 2020 (Q3 FY20), VodafoneZiggo said it was on track to achieve €210 million (€189 million) in post-merger cost synergies by the end of the year, twelve months ahead of schedule. Sign up below to access the rest of this article and all the telecommunications news you need. Note: * Formerly known as operating cash flow. The CFO spoke in language that was not out of place in an initial public offering (IPO) prospectus about VodafoneZiggo as a “very important national champion” of fixed mobile convergence (FMC). He further stressed that the key financial indicators EBITDA, free cash flow and revenue were all in the right direction (see table). “If it were listed,” the CFO added, “[the joint venture] would obviously get a pretty high valuation, especially compared to KPN.” Fries is cautiously asking analysts to pay attention to certain “activities” of its Dutch joint venture over the next 24 months. VodafoneZiggo is fine-tuning its IPO credentials with targeted financial data for Fiscal 20.

CEO Mike Fries considers the assets of the Dutch joint venture to be undervalued. The partner appears to be in line with Vodafone`s eagerness to raise funds from location networks across Europe. Wider discussions about the collaboration with VodafoneZiggo can be linked to the tower issue. Liberty Global, according to Bracken, has four “NATIONAL FMC Champions” in the UK (thanks to virgin media`s upcoming merger with Telefónica); Switzerland (via the combination of UPC Switzerland and Sunrise); Belgium (where Telenet is already listed); and VodafoneZiggo in the Netherlands. He called Telenet an “interesting model” and said Liberty Global was “drifting” to a swiss-listed champion; a champion listed in the United Kingdom; a Dutch champion; and maybe even a champion listed in the Benelux thanks to a combination of Telenet and VodafoneZiggo. Mike Fries, chief executive and vice president of Liberty Global, has previously acknowledged a “compelling logic” for the idea of merging the two companies (Vodafonewatch, No. 187). “We see [annual] free cash flow, which is around €400 million, accelerating from here,” Bracken said, adding that VodafoneZiggo “still has opportunities to cut costs.” .