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DENVER - Liberty Global (NASDAQ:LBTYA) Ltd. (NASDAQ: LBTYA, LBTYB, LBTYK), a leading international telecommunications and television company, has completed the spin-off of its Swiss operation, Sunrise, into a separate publicly traded entity. The separation was finalized following approval from Liberty Global shareholders at a special meeting held on October 25, 2024.
Sunrise will begin trading as an independent company with its American Depository Shares (ADSs) distributed to Liberty Global shareholders on November 12, 2024. For every five Class A or Class C shares of Liberty Global held, shareholders will receive one Class A ADS of Sunrise. Additionally, for every Class B share of Liberty Global owned, two Class B ADSs of Sunrise will be issued. Upon completion of the spin-off, there will be 68,759,702 Sunrise Class A Common Shares and 25,977,316 Class B Shares outstanding.
The new Sunrise Class A ADSs are set to commence trading on the Nasdaq under the symbol "SNRE" on November 13, and the Class A common shares will trade on the SIX Swiss Exchange under the symbol "SUNN" starting November 15. It is expected that the Sunrise Class A shares will join the Swiss Performance Index five trading days after November 15, 2024.
Shareholders interested in converting their ADSs into Sunrise shares will have the option to do so starting November 14, 2024, without incurring cancellation fees if done within the first three months post-spin-off.
Mike Fries, CEO of Liberty Global and incoming Chairman of Sunrise, stated, "The successful completion of the spin-off marks an important milestone in our ongoing strategy to unlock value for Liberty Global shareholders."
Liberty Global will continue to operate its other businesses in Belgium, Ireland, Slovakia, the United Kingdom (TADAWUL:4280), and the Netherlands post-spin-off. The company is known for providing advanced broadband, video, and mobile services through its fiber and 5G networks, serving over 80 million connections across Europe.
The information in this article is based on a press release statement from Liberty Global.
In other recent news, Liberty Global has revealed a series of strategic developments during its Q3 2024 earnings call. The company announced the upcoming spinoff of its Swiss subsidiary, Sunrise, scheduled for November 12, 2024, a move expected to enhance shareholder value. In addition, Liberty Global anticipates nearly $5 billion in total returns for the year, thanks to operational progress in the UK with Virgin Media O2 and in the Benelux region, where fiber rollout partnerships are deemed crucial.
The company also plans to rebrand its Ventures segment to Liberty Growth, indicating its focus on investments in scalable tech and digital infrastructure. This segment currently boasts a portfolio valued at $3 billion. Liberty Global maintains a strong cash balance of $3.5 billion and aims to deploy strategic transactions and operational synergies post-spinoff.
These recent developments come despite competitive pressures and a decline in some consumer fixed and mobile revenue metrics. However, the company remains optimistic, citing positive broadband net adds and mobile subscription growth at Sunrise. Analysts from various firms have noted these developments, recognizing the company's strategic positioning for growth through asset management and capital deployment.
InvestingPro Insights
As Liberty Global (NASDAQ: LBTYA) completes the spin-off of its Swiss operation, Sunrise, investors may be interested in the company's current financial position and market performance. According to InvestingPro data, Liberty Global's market capitalization stands at $7.15 billion, reflecting its significant presence in the telecommunications industry.
One of the key InvestingPro Tips highlights that management has been aggressively buying back shares, which could signal confidence in the company's future prospects following the Sunrise spin-off. This strategy may also help support the stock price as the company restructures its operations.
Despite the recent corporate action, Liberty Global's stock is trading near its 52-week high, with a price that is 92.76% of its peak. This suggests that investors have responded positively to the company's strategic moves, including the Sunrise spin-off.
It's worth noting that Liberty Global boasts impressive gross profit margins, with the latest data showing a gross profit margin of 67.46% for the last twelve months as of Q3 2024. This strong profitability at the gross level could provide the company with financial flexibility as it focuses on its remaining European operations.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. Currently, there are 5 more InvestingPro Tips available for Liberty Global, which could provide valuable context for understanding the company's financial health and market position post-spin-off.
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