In recent industry news, Liberty Global reports having completed its Dutch joint venture with Vodafone.
The deal was first announced in February. The deal is valued at $29.2 billion and it is a 50-50 JV partnership that combines Vodafone’s wireless communications assets with LGI’s business, broadband, and video services.
Together, these two groups aim to create a nationwide integrated communications provider that will operate under both the Ziggo as well as the Vodafone brands with over 15 million revenue generating units. The JV will be called VodafoneZiggo.
Specifically, the revenue generating entities are as follows:
– 5.3 million mobile
– 4.2 million video
– 3.2 million broadband
– 2.6 million fixed line telephony customers
Mike Fries, Liberty Global CEP, believes that VodafoneZiggo will be the most innovative converged communications services provider in Netherlands. He also added that they are excited for their shareholders, and marked the transaction as highly accretive, with significant synergies, and a predictable dividend stream.
Liberty Global predicted that the joint venture will generate more than 4 billion EUR in revenue. After the recapitalisation of VodafoneZiggo is complete, after taking into account the €0.8 billion equalisation payment by Vodafone, both groups will receive some form of monetary compensation. Specifically, Liberty Global will receive €2.2 billion and Vodafone will receive €0.6 billion in cash payments.
Vittorio Colao, Vodafone Group CEO, said that the day marks the creation of a strong integrated communications provider in the Netherlands. The Netherlands market is one of their core European markets.