Telefónica and Liberty Close the Merger of their Subsidiaries in the United Kingdom
Telefonica u Liberty global They have stopped Merger of their UK businesses, O2 and Virgin Media VMED 02 UK, 50% owned by both, once the necessary permits to form a joint venture are obtained from competition authorities and the country’s markets on 20 May
“The formation of this joint venture provides a very significant value for Telefónica from a business and financial point of view, and a £ 5.5 billion fund, of which £ 2.7 billion corresponds to the cash payment to Liberty Global’s Telefónica, so that the JV and The participation in 2,800 is to be offset. The million pounds are consistent with the gross funds from the recapitalization, ”the company assured through a statement.
With this operation, Telefónica It also manages to reduce the net debt to €5,000 million, As reported in the relevant incident sent to the National Securities Markets Commission (CNMV).
The transaction worth £ 31.6 billion (approximately € 43.3 billion) will form the largest telephone and internet operator in the United Kingdom, offering fixed and mobile telephony, broadband and TV to customers, the BT Group will become its biggest competitor.
The operation, which links fixed broadband operator Virgin Media and Mobile O2, Will generate “substantial synergy” worth 6.2 billion pounds (Euro 7,189 million at the current exchange rate), in terms of net present value and excluding integration costs.
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