Liberty Global, the multinational telecommunications company, has announced that it will acquire the remaining stake in Telenet for $1 billion.
The deal will see Liberty Global increase its stake in the Belgian cable and telecommunications company from 58% to 100%. This move comes as part of Liberty Global's strategy to expand its footprint in Europe and strengthen its position in the region's telecommunications market.
Liberty Global's decision to acquire the remaining stake in Telenet comes as the company looks to consolidate its presence in certain markets while shedding other assets. The move also comes at a time when Telenet's stock has seen a decline of about 50% over the past year, resulting in a market value of €1.7 billion.
Liberty Global has been Telenet's controlling shareholder since 2007 and has been investing significantly in the Belgian cable and telecommunications company over the years. The acquisition of the remaining stake in Telenet is part of Liberty Global's strategy to strengthen its position in the European telecommunications market.
Mike Fries, CEO of Liberty Global, stated that the acquisition of the remaining stake in Telenet is an "important step" for the company's growth in the region. He added that Liberty Global's significant investment in Telenet over the years has enabled the company to become the leading provider of converged services in Belgium.
The consolidation of Liberty Global's holdings in Telenet is seen as a positive move by analysts, who believe that the company's investment in the Belgian company will continue to pay off in the long run. Liberty Global has a strong presence in Europe, and the acquisition of Telenet's remaining stake will only serve to bolster its position in the region.