Belgian cable operator Telenet has claimed that Liberty Global’s buy-out bid of €35 per share is too low.
The announcement follows a report by independent valuation specialists Lizard that put a valuation range for the price per share of Telenet at €37 to €42. Cable giant Liberty Global, currently a majority shareholder of Telenet, made an offer of €35 per ordinary share for the remaining stake in the operator. Through its wholly-owned subsidiary, Binan Investment, Liberty Global owns 50.4% of Telenet’s outstanding issued share capital.
Liberty Global said it has “serious reservations” regarding assumptions about Telenet’s long-term business plan that were used in Lazard’s valuation report. “Liberty Global,
which has been advised by Morgan Stanley, believes that the Lazard report contains certain analyses and valuation methodologies that are not appropriate for the evaluation of the intended offer,” the company said in a statement.
Liberty Global confirmed that it intends to proceed with an offer based on a price of €35 per ordinary share of Telenet, and said it had decided to remove the 95% minimum
acceptance condition of the offer.