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Investing.com -- ITV PLC (LON:ITV) stock fell 8.8% in Wednesday morning trade after Liberty Global Ltd sold half of its stake in the British broadcaster through an accelerated bookbuild process.
Liberty Global’s wholly owned subsidiary, Liberty Global Ventures Limited, completed the block trade sale of 193,365,540 ordinary shares to institutional investors, representing approximately 5% of ITV’s issued share capital.
The transaction generated gross proceeds of approximately £135 million for Liberty Global.
Following the settlement of the placing, Liberty Global’s shareholding in ITV will be reduced from approximately 10% to 5%. The seller has agreed to a 60-day lock-up period during which it will not sell additional shares in ITV, subject to certain customary exceptions.
BNP PARIBAS and Deutsche Bank AG, London Branch (Deutsche Numis) served as joint global co-ordinators and bookrunners on the placing.
The significant share sale by a major stakeholder appears to have created selling pressure on ITV stock, contributing to today’s decline. Liberty Global’s decision to reduce its position by half may raise questions about its long-term investment outlook for the British media company.