Cinven raises €255 million via partial sale of its stake in Ziggo N.V.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA
European private equity firm, Cinven, today announces that it has successfully completed the sale of 10.8 million ordinary shares of Ziggo N.V. ("Ziggo" or the "Company"), the largest cable operator in the Netherlands, at a price of €23.50 per share, realising €255 million of gross proceeds.
Following the listing in March 2012 and this sale of shares, Ziggo will have generated total proceeds of €569 million for the Fourth Cinven Fund and a total money multiple of 2.7x including Cinven’s remaining shareholding in the company. At close of trading on 30 July 2012, Ziggo ordinary shares were trading at a 34% premium to the issue price. On completion of this transaction, Cinven will retain a 22% shareholding in Ziggo.
A total 29 million ordinary Ziggo shares were placed as a result of this transaction, incorporating those owned by Cinven, Warburg Pincus and certain affiliated co-investors (the "Selling Shareholders"), resulting in total gross proceeds of €681.5 million. After the completion of the transaction, the Selling Shareholders will own a combined 117 million shares in Ziggo, representing approximately 58% of the capital. Cinven and Warburg Pincus are subject to a lock-up period of 90 days following the completion of the transaction.
In March 2012, Cinven completed the successful IPO of Ziggo on the NYSE Euronext Amsterdam. Cinven led the original investment in Ziggo in 2006 and retained a 27% shareholding in the Company post-IPO.
On 20 July 2012, Ziggo reported its Q2 2012 results with revenues up 6.3% to €386.5 million year on year and adjusted EBITDA up 5.9% to €219.2 million on the same basis.
Leverage was reduced to 3.54x as at 30 June 2012 compared to 3.87x at 31 December 2011 and 4.20x at 30 June 2011.
Commenting on this transaction, David Barker, Partner at Cinven, commented:
"Since listing on the NYSE Euronext Amsterdam, Ziggo has continued to perform well and has recently delivered robust Q2 results with strong EBITDA growth and high cash conversion to further reduce leverage. Ziggo continues to invest in the development of new services and products and Cinven retains a 22% stake in the business underlining our belief in its future potential."
"Ziggo demonstrates our ability to originate successful investment opportunities through our sector expertise and European network and to execute complex transactions which take advantage of market consolidation. Ziggo will continue to pursue its successful growth strategy and we believe there is considerable further value to be generated for shareholders."
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
This press release does not contain or constitute an offer for sale or the solicitation of an offer to purchase securities in the United States. The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended, (the "Securities Act") and may not be offered or sold in the United States absent registration under the Securities Act or pursuant to an available exemption from, or a transaction not subject to, the registration requirements of the Securities Act.