Liberty Global to acquire Belgian mobile network operator Base for $1.43 bn

Cable telecoms company Liberty Global Plc's Belgian subsidiary Telenet yesterday struck a deal to acquire local mobile network operator Base from Dutch group KPN, for €1.325 billion ($1.43 billion).

Telenet, which is 56-per cent owned by Liberty Global, intends to fund the deal through a combination of €1 billion of new debt facilities and existing liquidity.

Telenet expects annual savings of around €150 million and would invest €240 million to upgrade Base's network.

The merger will create a leading integrated communications provider in Belgium with combined 2014 adjusted revenue of €2.4 billion and EBITDA of €1.1 billion.

Base is the third-largest mobile network operator in Belgium with 2014 revenue of €690 million with nearly 3.3 million mobile subscribers and a mobile service revenue market share of approximately 21 per cent.

Base operates under the brand names BASE, BASE Business and Ortel Mobile.

Post closing, Telenet and Mobistar SA will hold around 30 per cent shares each of the Belgium market, while Belgacom SA will hold around 40 per cent.

Colorado-based Liberty Global was formed through the 2005 merger of Liberty Media and UnitedGlobalCom.

It operates in 14 countries in Europe, and is the largest cable operator in Poland, Switzerland, Belgium, Austria, Slovakia, Hungary and Czech Republic.

Its triple-play services are provided through next-generation networks that connected 27 million subscribing customers to 56 million television, broadband internet and telephony services. It also has 5 million mobile subscribers across nine countries.

Liberty Global's consumer brands include Virgin Media, UPC, Ziggo, Unitymedia, Telenet and VTR. Its operations also include a commercial division called Liberty Global Business Services, and investment fund Liberty Global Ventures.

Liberty Global, which has splurged around $40 billion in the past seven years in acquiring European assets, has a market cap of $43.6 billion and 2014 revenues of $18.3 billion.

In 2013, it paid $15.75 billion to acquire Virgin Media Inc, the UK's second largest pay-TV operator that also provides fixed and mobile telephone, and broadband internet services. (See: Liberty Global strikes Virgin Media deal for $15.75 bn)

As part of the acquisition, Liberty Global relocated to the UK, becoming a subsidiary of a new British holding company.

Bloomberg had in last November 2014 reported that British telecom major Vodafone Group Plc was exploring the acquisition of John Malone-backed Liberty Global, a deal that would create Europe's largest phone, internet and TV company. (See: Vodafone mulls acquiring Liberty Global)