Liberty Global Agrees C&W Acquisition

Liberty Global is acquiring Cable & Wireless Communications (CWC), in a cash-and-stock deal valued at $5.3 billion. Including net debt, the transaction is valued at $8 billion. CWC is a cable operator in the Caribbean.

The move is part of an effort by Liberty Global to extend its reach across Latin America, as it has done in Europe over the past 10 years. The combined company will have 10 million cable subscribers across LATAM and the Caribbean.

Liberty Global recently created a separate tracking stock called LiLAC, for its LATAM and Caribbean holdings; CWV will be part of LiLAC. The LiLAC Group will be 25.4% owned by existing LiLAC shareholders, 7.2% by existing CWC shareholders, and the remaining 67.4% by an ‘inter-group interest’ held by Liberty Global.

The deal is subject to the standard regulator approvals.