Exclusive: Liberty Global weighs stake sale in Swiss telecom unit Sunrise, sources say
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 05 2024
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Source: reuters
- Liberty Global Considers Selling Stake in Swiss Telecom Operator Sunrise: Liberty Global has explored selling a stake in Sunrise ahead of a planned spin-off later this year, engaging with investors including Swiss family offices.
- Planned Spin-Off of Sunrise by Liberty Global: In February, Liberty Global announced plans to spin off Sunrise to shareholders on the SIX Swiss exchange in the second half of the year, with JP Morgan and UBS leading the search for investors.
- Interest from Former Credit Suisse CEO Thomas Gottstein: Reports suggest that former Credit Suisse CEO Thomas Gottstein wanted to be involved in the spin-off and find investors willing to buy shares before Sunrise's listing.
- Potential Valuation of Sunrise: Any deal could value Sunrise at an enterprise value in the range of 8 to 9 billion Swiss francs, with concerns raised about high debt levels and valuation expectations slowing negotiations with some investors.
- Rationale for Selling Stake in Sunrise: Selling a stake in Sunrise could assist in managing share sales post-spin, potentially reducing the impact of Liberty Global shareholders selling shares and addressing concerns about owning a telecom company solely in Switzerland.
Analyst Views on LBTYA
Wall Street analysts forecast LBTYA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LBTYA is 13.93 USD with a low forecast of 11.00 USD and a high forecast of 21.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
1 Buy
5 Hold
1 Sell
Hold
Current: 10.520
Low
11.00
Averages
13.93
High
21.00
Current: 10.520
Low
11.00
Averages
13.93
High
21.00
About LBTYA
Liberty Global Ltd. is an international provider of broadband Internet, video, fixed-line telephony and mobile communications services to residential customers and businesses in Europe and are an active investor in the infrastructure, content and technology industries. It also provides technology solutions and finance services. The Company's segments include Liberty Telecom, Liberty Growth and Liberty Services. Liberty Telecom includes converged broadband, video and mobile communications businesses. Liberty Growth invests, grows and rotates capital into scalable businesses across the technology, media/content, sports and infrastructure industries with a portfolio of approximately 70 companies and various funds, including stakes in companies like ITV, Televisa Univision, Plume, EdgeConneX and AtlasEdge, as well as its controlling interest in the Formula E racing series. Liberty Services offers technology and finance service platforms offered by its centralized functions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
