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Liberty Global to distribute Lat Am tracking shares on July 1

Liberty Global CEO, Mike Fries

Liberty Global CEO, Mike Fries

Liberty Global is to implement the distribution of its LiLAC tracking stock on July 1, marking a key milestone in its plan to spin off its Latin American and Caribbean assets. 

At the close of trading on July 1, the operator will distribute one share of the corresponding class of LiLAC Group ordinary shares for 20 Liberty Global shares held by each shareholder of Class A, B and C ordinary shares. Cash will be issued in lieu of fractional LiLAC Group ordinary shares.

Liberty said it would inject US$100 million (€90 million) into the LiLAC Group ahead of the distribution to provide liquidity to fund ongoing operating costs and acquisitions.

The company said it expected LiLAC A and C shares to continue to trade on NASDAQ, while B shares will trade on the OTC Bulletin Board.

Liberty Global CEO Mike Fries told analysts after the company’s full-year results announcement in February that the LiLAC tracking stock would represent “a good deal for investors” by providing them with a choice of where to invest. He said that Liberty had a significant opportunity to expand in Latin America, where broadband penetration is still only about 25% and pay TV penetration is about 40%.

LiLAC will comprise Chilian operator VTR and Puerto Rican operator Cablevision initially. Fries said in February that he believed there were very interesting consolidation opportunities in the region that would be easier to communicate to investors via a dedicated organisation.