Liberty Global launches LiLAC tracking stock
July 2, 2015
Liberty Global has completed its previously announced distribution of the tracking stock for its operations in Latin America and the Caribbean (the “LiLAC Group”) to shareholders. These ordinary shares will begin regular-way trading on July 2nd. The LiLAC Class A (LILA) and Class C (LILAK) ordinary shares will trade on NASDAQ, and the LiLAC Class B (LILAB) ordinary shares will trade on OTC Link. The Liberty Global Class A, Class B and Class C ordinary shares will continue to trade on NASDAQ under the symbols LBTYA, LBTYB and LBTYK, respectively.
Mike Fries, CEO of Liberty Global, stated, “The launch of our LiLAC tracking stock is an exciting event, which we believe will enhance long-term equity value for shareholders. Our cable operations in Chile and Puerto Rico are two of the most advanced platforms in the region. Both businesses have consistently delivered strong financial results and should continue to generate mid- to high-single-digit rebased OCF growth going forward. LiLAC is also uniquely positioned to exploit the highly fragmented landscape characterized by low broadband and pay TV penetrations.”
The LiLAC Group tracking stock forms a “pure-play” cable stock focused on Latin America and the Caribbean, giving shareholders the opportunity to invest directly in the region. The LiLAC Group initially has attributed to it Liberty Global’s Chilean business, VTR, the largest cable operator in Chile, as well as our 60% interest in the largest cable company in Puerto Rico, Liberty Cablevision. The entities comprising the LiLAC Group also have $100 million of cash provided by Liberty Global in order to provide liquidity to fund, amongst other things, ongoing operating costs and acquisitions. Following the completion of the Choice acquisition on June 3rd, LiLAC now passes over 4 million homes, serving approximately 3.4 million revenue generating units (“RGUs)1 and generating over $1.2 billion of annual revenue.