FX.co ★ Liberty Global Mulls To Spin-Off 100% Of Sunrise To Shareholders; Stock Drops

Liberty Global Ltd., a prominent telecommunications service provider, revealed plans last Friday to divest all its holdings in Sunrise to its shareholders. The company anticipates this decision will widen its shareholder base, foster long-term value growth, and strengthen Sunrise's role as a locally-listed Fixed Mobile Convergence (FMC) contender.

Liberty Global further outlined plans to list Sunrise on the SIX Swiss Exchange in the latter half of 2024. Notably, this listing will feature a lean capital structure supported by an impressive CHF 1.5 billion debt reduction.

Once the intended spin-off is complete, Liberty Global plans to maintain its consolidated interests in other significant ventures. These include Telenet, Virgin Media Ireland, along with joint ventures in Virgin Media-O2 and VodafoneZiggo. Liberty Global's Ventures portfolio and excess cash balance will also remain intact.

At present, Liberty Global's shares are trading at a decreased rate of $18.34 on Nasdaq, marking a 4.86% decline.