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News Liberty Global buying Sunrise for €6.2bn After what seemed to be a long— running, on—off courtship, Liberty Global has agreed to make an all cash offer for all of Swiss multiplay telco Sunrise at a price of CHF110 (€102.20) per share. The offer represents a 32% premium to the average price per share of CHF83.17 during the period up to August 2020 and values Sunrise equity at CHF5 billion, representing a total enterprise value of CHF6.8 billion. Sunrise’s Board of Directors is unanimously recommending that its shareholders accept the offer; Freenet AG, Sunrise’s largest shareholder, which holds approximately 24% of Sunrise’s capital, has commitmented to tender its shares at the offer price. The combination will create a leading national converged challenger in Switzerland. Together, the combined business would have CHF3.1 billion in revenue, 2.1m mobile post-paid subscribers, 1.2m broadband subscribers and 1.3m TV subscribers, reflecting approximately 30% market share in each segment. Sunrise’s Board of Directors is unanimously recommending that its shareholders accept the offer “The industrial logic of this merger is undeniable, but the real winners are Swiss consumers and businesses,” asserted Mike Fries, CEO of Liberty Global. “This powerful combination of 5G wireless and gigabit broadband will accelerate digital investment at a time when connectivity has never been more essential. Fixed-mobile convergence is the future of the telecom sector in Europe, and now Switzerland will have a true national challenger to drive competition and innovation for years to come. We look forward to welcoming Sunrise employees to the Liberty and UPC family and congratulate them and the board on their success.” “This transaction is another significant step on our path to create fixed-mobile champions in all of our core markets, crystallising the value of our superior broadband networks and driving long-term, sustainable free cash flow growth. Even after this deal, and assuming completion of our recently announced UK transaction, we will continue to have approximately $7 billion of liquidity to drive value-creation for shareholders,” he advised. “In making this offer, Liberty Global is recognising the quality and resilience of our business and its potential going forward,” stated Thomas D Meyer, chairman of Sunrise Board. “The Board believes that the offer is in the best interest of our shareholders and will create opportunities for the Sunrise employees to be part of a fully converged national champion. The combination of Sunrise and UPC Switzerland will create the leading fixed-mobile challenger in the Swiss telecoms market, with the scale and infrastructure to compete against Swisscom.” “Sunrise has delivered on its qualityfocused strategy and built one of the best mobile networks worldwide,” commented Andre Krause, CEO of Sunrise. “We have successfully gained market share in all our businesses, underpinned by our strong focus on customer centricity, service excellence, innovation and quality offering. We are very proud of what our employees have achieved and believe that the combination with UPC Switzerland will enable the combined company to become the leading fully converged challenger in the market.” “This deal creates a fantastic and unique opportunity to create a new combined company, with significant benefits for consumers and businesses across Switzerland, as well as providing growth opportunities for our employees,” added Baptiest Coopmans, CEO of UPC Switzerland. We are building the future of Switzerland with a new material scale to drive competition, innovation and customer choice in the Swiss market, at a time when connectivity, communication and home entertainment have never been more essential. With Liberty Global backing this deal, we have the critical mass to make a difference in the Swiss market. We are very happy that we can join forces with Sunrise by combining great networks, leading brands and commercial strategies as well as uniting cultures.” Liberty unveils green STB Liberty Global is introducing what it claims is its greenest-ever settop box, delivering a world-class viewing experience while dramatically reducing energy consumption and the use of plastics. Designed in-house by engineers at Liberty Global and manufactured by CommScope, the 4K Mini TV Box will be available immediately to UPC Poland customers and will be introduced in other Liberty Global markets in due course. “Our new 4K box is very small in size, but it packs a mighty punch, giving our customers a cutting-edge 4K viewing experience across the full spectrum of live, on-demand and streamed content,” stated Enrique Rodriguez, CTO, Liberty Global. “Moreover, the 4K Mini TV Box combines technological innovation with our long-standing commitment to sustainability, delivering a worldclass viewing experience while reducing energy consumption and use of plastics.” “At UPC Poland, customer satisfaction is paramount to us, so we are committed to delivering outstanding customer care combined with best in-class connectivity and entertainment, anytime and anywhere,” added Robert Redeleanu, CEO Liberty Global, Eastern Europe. 6 EUROMEDIA