Liberty Global swoops in for Vodafone stake worth GBP1.2 billion

(Alliance News) - Liberty Global PLC on Monday said it has acquired a 4.9% stake in FTSE ...

Alliance News 13 February, 2023 | 7:06PM
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(Alliance News) - Liberty Global PLC on Monday said it has acquired a 4.9% stake in FTSE 100-listed telecommunications company Vodafone Group PLC, believing it to be undervalued.

Liberty Global Chief Executive Mike Fries said the company believes Vodafone's share price "does not reflect the underlying long-term value of their operating businesses".

Liberty Global bought 1.33 billion shares in Vodafone and will fund the investment through a non-recourse financing. It said it required equity funding of GBP225 million.

Shares in Liberty Global were down 1.9% at USD20.88 in New York on Monday, while Vodafone PLC closed down 0.5% at 91.62 pence in London.

At current market prices, the stake purchased by Liberty Global is worth GBP1.22 billion.

Liberty, in partnership with Telefonica SA, owns Virgin Media O2, a rival operator to Vodafone in the UK. It also has investments in companies such as broadcaster ITV PLC and the Formula E racing series.

It becomes the latest high profile shareholder to be attracted to Vodafone, following share purchases by French billionaire Xavier Niel and United Arab Emirates telecoms operator e&.

Liberty said it was not considering an offer for Vodafone.

By Jeremy Cutler, Alliance News reporter.

Comments and questions to newsroom@alliancenews.com.

Copyright 2023 Alliance News Ltd. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
ITV PLC 76.60 GBX 3.03 -
Vodafone Group PLC 68.08 GBX 0.80
Liberty Global PLC Class A 16.76 USD 1.76
Telefonica SA 3.86

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