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Liberty Global PLC Class A LBTYA

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Orange to Acquire 75% of Belgian Cable Firm Voo; Enterprise Value of EUR 1.8 billion; Maintain FVE

Javier Correonero Equity Analyst

Analyst Note

| Javier Correonero |

Orange announced it has entered into exclusive negotiations to acquire 75% of cable operator Voo in Belgium, based on an enterprise value of EUR 1.8 billion. The decision comes after Voo held conversations with 27 bidders. The acquisition price implies a 9.5 times enterprise value/EBITDA multiple before synergies (no indications on synergies have yet been provided), which we see as slightly high compared with other cable peers. We maintain our fair value estimate and no moat rating for Orange.

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Company Profile

Business Description

Liberty Global is one of the largest cable owners in Europe, with operations in the United Kingdom (50%-owned), Switzerland, Belgium (60%-owned), the Netherlands (50%-owned), Ireland, Poland, and Slovakia. The firm sold its businesses in Germany, Romania, Hungary, and the Czech Republic to Vodafone in 2019, generating $11 billion proceeds, and merged its U.K. business with wireless carrier O2 in June 2021. The firm's operations serve about 5.5 million Internet access customers in the U.K., 1.7 million in Belgium, 1.1 million in Switzerland, and 3.4 million in the Netherlands. Liberty also provides wireless services in each of these four markets to a combined 41 million customers, including 27 million at O2.

Contact
161 Hammersmith Road, Griffin House
London, W6 8BS, United Kingdom
T +44 2084836449
Sector Communication Services
Industry Entertainment
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type —
Employees 23,000

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