Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Sunrise presents fairness opinion supporting UPC valuation

Published 03/09/2019, 19:39
Updated 03/09/2019, 19:40
© Reuters.  Sunrise presents fairness opinion supporting UPC valuation
FNTGn
-
LBTYA
-
SRCG
-

ZURICH (Reuters) - Sunrise Communications (S:SRCG) said on Tuesday it had received a new fairness opinion supporting the valuation of Liberty Global's (O:LBTYA) Swiss UPC business that Sunrise wants to acquire, as it seeks to secure shareholder support for the deal.

The transaction is facing opposition from its top shareholder Freenet (DE:FNTGn). Sources told Reuters last week that at least two other big investors were also against the 6.3 billion Swiss franc (5.3 billion pounds) deal.

"ValueTrust has reviewed the key performance indicators and financial projections of UPC Switzerland, its current trading as well as synergies emerging from the combination of UPC Switzerland and Sunrise," Sunrise said in a statement.

The Swiss telecoms firm said ValueTrust supported the financial terms of the transaction and standalone valuation of UPC Switzerland.

"Adjusted for cost and capex run-rate synergies, the operating free cash flow multiple based on the acquisition value of 6.3 billion Swiss francs (5.3 billion pounds) is 10.2 times for 2018 and 12.5 times for 2019, which are below the current trading levels of key listed peers," Sunrise said.

Sunrise said it would publish the full fairness opinion along with the invitation to the extraordinary shareholder meeting for investors to vote on the capital hike to help finance the deal that Freenet opposes.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.