SUNRISE COMMUNICATIONS GROUP AG Press release
FOR RELEASE IN SWITZERLAND - THIS IS A RESTRICTED COMMUNICATION AND YOU MUST NOT FORWARD IT OR ITS CONTENTS TO ANY PERSON TO WHOM FORWARDING THIS COMMUNICATION IS PROHIBITED BY THE LEGENDS CONTAINED HEREIN.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN
Opfikon, 14 October 2019; 7:20 a.m. CET
Sunrise announces commitment from Liberty Global to invest up to CHF 500 million in Sunrise's upcoming rights issue
- Sunrise and Liberty Global have entered into a conditional rights purchase agreement pursuant to which Liberty Global will invest up to CHF 500 million in a combination of Sunrise tradable rights and subsequent subscription of newly issued shares
- Sunrise will provide Liberty Global with the right to propose a representative for election to the Sunrise Board of Directors at the next AGM if Liberty Global achieves a shareholding above 5%
Liberty Global made a formal proposal to Sunrise to invest up to CHF 500 million in its upcoming rights issue to finance the acquisition of UPC Switzerland. The investment will take place through the purchase of tradable subscription rights on the market during the rights trading period and the subsequent subscription of newly-issued Sunrise shares. Liberty Global has requested that Sunrise commits to nominate a Liberty Global representative for election to the Board of Directors at the next annual general meeting scheduled for April 2020.
Sunrise believes that:
- Liberty Global can add considerable value by leveraging its operational and integration experience as a leading global cable operator to support management in delivering the synergies and running its high-speed broadband network;
- Liberty Global's investment in the rights issue will lessen the financial commitment needed from Sunrise shareholders; and
- Liberty Global investing in the rights issue constitutes further validation of the strong strategic and financial rationale of the combination.
Statements from Sunrise's Chairman
Peter Kurer, Chairman of the Board of Directors of Sunrise said:
"We welcome Liberty Global's investment in our rights issue which further validates the compelling strategic and financial rationale of the combination between Sunrise and UPC Switzerland. Liberty Global is a leading global cable operator and will bring considerable experience to our Board to support management in running the combined business and delivering on our identified, actionable synergies. We look forward to welcoming Liberty Global as a significant shareholder in our company and, in due course, as partner in our Board."
Sunrise is convinced of the enormous strategic importance of the acquisition of UPC Switzerland, which will significantly benefit Swiss consumers and businesses. The transaction will position Sunrise as the leading fully-integrated challenger in the Swiss telecommunications market, creating a stronger and more valuable company for shareholders.
Shareholders are advised to vote in favour of the rights issue at the forthcoming extraordinary general meeting on 23 October 2019. Further information in relation to the transaction and the shareholder vote can be found on www.sunrise.ch/ir.
| Provider | Channel | Contact | ||
|---|---|---|---|---|
|
Tensid EQS Ltd., Switzerland www.tensid.ch |
newsbox.ch www.newsbox.ch |
Provider/Channel related enquiries marco@tensid.ch +41 41 763 00 50 |
