Liberty Global plc [NASDAQ: LBTYA, LBTYB, and LBTYK] has disclosed that it has decided to divest the UPC Poland. The divestiture will be finalized after the firm has inked an agreement to sell 100% of its operations in Poland to iliad S.A.’s Polish mobile subsidiary Play. The firm has decided to divest UPC Poland for a total enterprise value of PLN 7.0 billion ($1.8 billion) dependent on customary debt and working capital adjustments at execution.
The sale price signifies a multiple of nearly 9x UPC Poland’s projected 2021 Adjusted EBITDA, and nearly 20x its projected 2021 operating free cash flow. It has been disclosed that the profit from the sales is anticipated to be used for general corporate purposes. The firm is planning the reinvestment into its business and supports the significant, multi-year share buyback commitment of the firm.
Furthermore, Iliad S.A. is the parent firm of the iliad Group. It works under the trade names of Free in France, iliad in Italy, and Play in Poland. Play is a consumer-focused mobile network operator in Poland with more than 15 million subscribers. As part of the agreement, Liberty Global has decided to offer certain transitional services to Play for a period of more than four years. These services primarily will be included network and information technology-related functions.
In addition, the execution of the agreement is dependent on the fulfillment of certain customary closing conditions. The conditions which are necessary to be fulfilled include the receipt of requisite regulatory authorization. The execution is currently anticipated to occur in the first half of 2022.