Liberty Global has agreed to sell UPC Poland to Play, iliad’s Polish mobile phone subsidiary, for a total enterprise value of $ 1.8 billion.
Liberty Global’s networks in Poland crossed 3.7 million homes and served 1.5 million customers who subscribed to 1.3 million broadband services, 1.4 million video services and over 600,000 telephony services at 30 June 2021.
The sale price represents a multiple of approximately 9 times UPC Poland’s estimated adjusted EBITDA for 2021, and nearly 20 times its estimated free operating cash flow for 2021. Closing is currently scheduled for the first half of 2022.
Iliad is the parent company of the iliad Group, which operates under the Free banners in France, iliad in Italy and Play in Poland. Play is a consumer-focused mobile network operator in Poland with over 15 million subscribers.
“This transaction highlights the significant value of fiber-rich HFC networks in Europe, as well as the substantial synergy benefits inherent in fixed-mobile convergence (FMC) mergers,” said Mike Fries, CEO of Liberty Global.
The cash proceeds, net of debt repayment, from this sale of assets of approximately $ 600 million will increase Liberty Global’s already large cash balance, which stood at $ 4.1 billion as of June 30. 2021.
The proceeds of the sale (net of debt repayment of the UPC banking group) are expected to be used for general corporate purposes, which may include reinvestment in the business and support for the large buyout commitment of the company. multi-year actions of the company.
Liberty Global has agreed to provide Play with certain transition services for a period of up to four years. These services will mainly include functions related to networks and information technology. Annual fees will depend on the actual level of services required by Play.