Virgin Media O2 co-owner Liberty Global has bought a 4.92 per cent stake in Vodafone Group comprising 1,335 million shares for £225 million.
But the massive converged communication company was emphatic it was not considering a takeover bid and is not seeking board representation, Vodafone shares rose by 2.1 per cent to 94p after the announcement. The share price was 210p five years ago.
“Vodafone’s current share price does not reflect the underlying long-term value of their operating businesses, or their announced consolidation and infrastructure opportunities,” said Liberty Global MD Mike Fries
“We remain disciplined about our capital. We fully expect that equity used to fund this investment will be replenished with the sale of certain non-core assets over time.”
The £225 million shares bill was paid for by equity funding from Liberty Global. The investment is not big enough to require regulatory approval.
The investment in Vodafone is part of Liberty Global’s investment portfolio of more than 75 companies and investment funds across content, technology, and infrastructure, including stakes in companies such as ITV, Televisa, Univision, AtlasEdge, Plume, and the Formula E racing series.
Liberty currently provides over 86 million fixed and mobile connections* across Europe and the United Kingdom. As well as Virgin Media O2 it owns VodafoneZiggo in The Netherlands, Telenet in Belgium, Sunrise in Switzerland, Virgin Media in Ireland and UPC in Slovakia.
