Liberty Global has announced that it supports the cancellation of Sunrise Communications’ Extraordinary General Meeting (EGM), which had been scheduled to take place October 23rd.
Sunrise was seeking approval for an ordinary capital increase by way of a rights offering to finance its pending acquisition of UPC Switzerland. Sunrise has reviewed the vote tally, including the intention of its largest shareholder Freenet to vote against the deal, and determined that the proposal was unlikely to be approved by shareholders.
The existing share purchase agreement between the parties will remain in place with some minor amendments, including the flexibility to convene a new EGM and certain adjusted termination rights. In addition, the commitments by Liberty Global in the recently announced Conditional Rights Purchase Agreement will lapse and thereby terminate.
Reacting to the Liberty statement, Severina Pascu, CEO of UPC Switzerland, said: “Regarding the transaction, we have nothing to add to the Liberty Global press release issued this morning. UPC Switzerland is a strong company on a stand-alone basis. Our turnaround plan is working, we keep investing in our innovative product portfolio, and our Gigabit network assets continue to have strategic long term value.”