UPC has secured a 96.6 percent stake in Sunrise

The takeover of the telecoms company Sunrise by UPC is on the home straight. Following the completion of the takeover bid, UPC owns 96.6 percent of all Sunrise shares. The delisting from the Swiss stock exchange is thus drawing closer, according to a joint statement on Tuesday.

liberty-will-sunrise-kaufen

UPC had made its interest in Sunrise public at the end of August (Werbewoche.ch reported). UPC owner Liberty Global is digging deep into its pockets: Sunrise shareholders are to receive CHF 110 per share - that makes a total of CHF 5 billion. This values Switzerland's second-largest telecoms group at CHF 6.8 billion, including debt.

In the previous year, the liaison had played out the other way around: At that time, Sunrise wanted to walk UPC down the aisle for CHF 6.3 billion. However, the deal failed due to opposition from shareholders led by Germany's Freenet, which criticized the purchase price and the necessary capital increase as being too high. (Werbewoche.ch reported). Freenet is known to support the current deal.

 

Challenger for Swisscom

Together, UPC and Sunrise want to become a potent challenger to top dog Swisscom. Together they will achieve sales of CHF 3.1 billion and have 2.1 million mobile subscribers. With 1.2 million broadband customers and 1.3 million TV subscribers, they will achieve a market share of around 30 percent in each area.

One aim of the merger is also to eliminate the respective weak points. Sunrise, for example, is getting its own fixed network, while UPC is now getting a mobile network. (SDA)

(Visited 67 times, 1 visits today)

More articles on the topic