European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>Liberty has waived the 95% threshold condition. Liberty has now mandatorily opened again the tender given it owns more than 90% (93.43%),  on same terms until 13 September (settlement 27 September).</li>
<li>At 5.9x EV/Fwd EBITDA (vs. 5.4x EV/20e EBITDA for Orange Belgium minorities), the offer is relatively cheap, but also reflects the uncertainties surrounding Citymesh's entrance and risk of market share losses.</li>
<li>Spread is positive. After the second acceptance period closes, I believe the delisting is extremely likely. With limited liquidity and floor dividend no longer guaranteed, recommendation is accept the offer. </li>
</ul>


Liberty has waived the 95% threshold condition. Liberty has now mandatorily opened again the tender given it owns more than 90% (93.43%),  on same terms until 13 September (settlement 27 September).
At 5.9x EV/Fwd EBITDA (vs. 5.4x EV/20e EBITDA for Orange Belgium minorities), the offer is relatively cheap, but also reflects the uncertainties surrounding Citymesh's entrance and risk of market share losses.
Spread is positive. After the second acceptance period closes, I believe the delisting is extremely likely. With limited liquidity and floor dividend no longer guaranteed, recommendation is accept the offer. 


Liberty/​​Telenet: Re-Opening of Tender Offer

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

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<ul>
<li>Telenet has announced the publication of the prospectus. The Board of Directors of Telenet has prepared a response memorandum in which it sets out its recommendation of the Offer.</li>
<li>The offer is opportunistic and optically generous, with neither interloper risk nor sweetening to be expected. I believe most investors will cash out. Liberty could eventually drop the acceptance threshold.</li>
<li>Given the ambiguity surrounding both the company and the sector in Belgium, I still think Liberty might acquire Telenet for almost a bargain. Spread is 2.38%/19.8% (gross/annualised).</li>
</ul>


Telenet has announced the publication of the prospectus. The Board of Directors of Telenet has prepared a response memorandum in which it sets out its recommendation of the Offer.
The offer is opportunistic and optically generous, with neither interloper risk nor sweetening to be expected. I believe most investors will cash out. Liberty could eventually drop the acceptance threshold.
Given the ambiguity surrounding both the company and the sector in Belgium, I still think Liberty might acquire Telenet for almost a bargain. Spread is 2.38%/19.8% (gross/annualised).


Liberty/​Telenet: Opening of Acceptance Period

Belgium

Telenet Group Holding NV provides telephone and internet services through a network of fiber-optic and coaxial cable.  The company offers customized packages to businesses and individual clients in Belgium.

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Telenet Group Holding NV (TNET BB)

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Jesus Rodriguez Aguilar

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52-week Range

Market Cap (USDm)

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Liberty/​​Telenet: Re-Opening of Tender Offer

The offer is relatively cheap, but reflects the uncertainties surrounding Citymesh's entrance and market share losses. After the reopened period...

Jesus Rodriguez Aguilar

Weekly Wrap - 21 Jul 2023

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and...

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The Europe HY Trade Book for July 2023 includes current trade recommendations drawn from our European HY coverage universe, along with...

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The Europe HY Trade Book for June 2023 includes high-conviction trade ideas drawn from our European HY coverage universe, along with...

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Liberty/​Telenet: Opening of Acceptance Period

On 7 June, Telenet announced the publication of the prospectus. The Board of Directors of Telenet has prepared a response memorandum in which it...

Jesus Rodriguez Aguilar

Liberty/Telenet: Re-Opening of Tender Offer

Liberty/Telenet: Opening of Acceptance Period