Liberty Global To Purchase Cable & Wireless Communications Worth $5.3 Billion

Multinational cable Television company titled Liberty Global says it is obtaining cable and wireless communication worth $5.3 billion deal.

The company made the announcement in a press release that it is purchasing cable and wireless communication from a London-based telecommunication corporation for stock and special dividend costing $5.3 billion.

Liberty Global, which is managed by famously known billionaire John Malone, it would gather cable and wireless into its LiLAC business unit. The entities will then have 10 million subscribers of video, broadband internet, and mobile phone service as reported by NBC News.

Liberty's offer adds up to 78.04 pence per share in addition to a profit of 3 pence per share. The aggregate is 11% with the normal cost with cable and wireless stock last week and 40% over its end cost on Oct. 21. The day before Cable & Wireless communication had already announced that the team was in negotiation to be purchased by the Liberty Global.

The purchase is a 'watershed moment' for the LiLAC, as it "will add significant scale and management depth to our fast-growing operations in Latin America and Carribean," Liberty Global's CEO, Mike Fries exposed in a statement, according to Bloomberg Business.

Cable and Wireless, which also manages a network in Seychelles, got more than half of its $1.75 billion in income a year ago in Panama and Carribean. Malone turned himself into a shareholder a year ago when Cable & Wireless purchased his digital TV and internet supplier Columbus International Inc. Malone and two other prime co-founders of Columbus International Inc. were granted a 36% stake of the combined organization.

As part of the agreement, Liberty Global will acquire Cable & Wireless's total debt which was around $2.7 billion as of September 30. The agreement designates a multiple of 10.7 times Cable and Wireless yearly revenue before interest, taxes and amortization.

"We have seen Malone build out infrastructure first in Europe to create a distribution platform and no he is adding content deals. He has both in the United States already," said Neil Campling, an analyst with Aviate Global in London.

Generally, Liberty Global has been working on catching up stakes in content organizations. During the past year, it made a deal with the Irish Broadcaster TV3 and bought stakes in ALL3Media, British broadcaster ITV, and Lions Gate Entertainment Corp, as reported by The Wall Street Journal.

Liberty Global is a separate organization from Mr. Malone's personal Liberty Broadband Corp, which supports the United States based Charter Communications Inc.