InfraVia, Liberty Global and Telefonica Acquire Substantial Group
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 16 hours ago
0mins
Should l Buy LBTYA?
InfraVia, Liberty Global and Telefonica have announced an agreement to acquire Substantial Group. Founded in 2019, Substantial Group, owned by investors Advencap, DigitalBridge and Soho Square Capital, is the UK's second largest alternative fiber provider, expected to have more than 3.4M fiber premises and over 500,000 customers by completion. The acquisition will be made by the parties' joint venture company, nexfiber. When combined with the growing fiber footprint of Virgin Media O2, co-owned by Liberty Global and Telefonica, the two networks will collectively reach 20M premises. Infravia, Liberty Global and Telefonica are committing GBP 1B in new net funding for nexfibre to fund the transaction - made up of GBP 850M from Infravia and GBP 150M jointly from Liberty Global and Telefonica, with Virgin Media O2 committing traffic on 4.6m overlapping and adjacent homes. Completion of the transaction is subject to customary regulatory approvals and is expected by Q3.
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Analyst Views on LBTYA
Wall Street analysts forecast LBTYA stock price to rise
6 Analyst Rating
0 Buy
5 Hold
1 Sell
Hold
Current: 11.160
Low
11.00
Averages
12.75
High
13.90
Current: 11.160
Low
11.00
Averages
12.75
High
13.90
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.
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See More
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See More
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- Postpaid Subscriber Losses: Postpaid net losses totaled 164,800, primarily driven by elevated churn during the 30-day exit window following the October price increase announcement, highlighting the impact of pricing adjustments on customer loyalty.
- ARPU Decline: Fixed ARPU declined by 0.8% year-over-year due to pricing pressures, particularly during the Black Friday period, indicating potential threats to revenue from intensified market competition.
See More
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- Fiber Footprint Expansion: This acquisition is anticipated to expand the fiber footprint of Liberty Global and its partners to 20 million premises in the UK, significantly enhancing market share and driving future growth potential.
See More
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See More
