Liberty Global CEO Says Ziggo Spin-Off Is 'Happening' As Synergies Seen Well Above €1 Billion
Mike Fries cites more than $700 million in tax assets and December prospectus filings for the planned second-quarter 2027 spin.
Liberty Global, which runs broadband and communications businesses through joint ventures including VodafoneZiggo and Telenet, said its planned spin-off of Ziggo Group is on track for the second quarter of 2027, with synergies now well in excess of €1 billion. CEO Mike Fries told investors on Tuesday's earnings presentation that the spin "is happening."
Tax assets and a December filing
Fries said the combined group structure will deliver over $700 million in tax assets, and that those benefits will make up a significant part of the synergies. He described the €1 billion figure as the target the company gave previously.
Liberty Global expects to file initial, confidential prospectuses with both the SEC and the Dutch AFM in December, which Fries said leaves more than enough time for the second-quarter 2027 timing. Goldman Sachs, BNP Paribas and ABN AMRO have been finalized as the lead banking team, he said.
The plan combines Liberty Global's VodafoneZiggo and Telenet interests into a new holding company, Ziggo Group, to be listed on Euronext Amsterdam, with Liberty Global spinning its equity stake off to its shareholders.
No corporate cash, except as a dividend
Pressed by James Ratzer of New Street Research on whether Liberty Global would put corporate cash into Ziggo Group, Fries said the only scenario he would consider is a tax-free, dividend-like payment to shareholders, as with Sunrise. "It's happening," he said, adding that the company is not waiting for "all the stars to align."
He called such a contribution unlikely and declined to discuss thresholds, pointing to a Capital Markets Day and the "6 to 8 months" ahead. CFO Charlie Bracken said management will lay out the free cash flow bridge there, and told UBS analyst Polo Tang to assume a roadmap exists to 4.5x leverage and €500 million of equity free cash flow.
Deleveraging and operating results
The sale of the VodafoneZiggo towers is expected to close imminently with gross proceeds of €670 million. The Wyre sell-down is expected to take Telenet's leverage to 4.5x.
VodafoneZiggo added 12,000 broadband customers, which Fries called its best quarterly result in over seven years, and returned to revenue growth for the first time since 2024. Its adjusted EBITDA fell 6.9%, in line with guidance, Bracken said, reflecting the "How We Win Plan" and one-off investments in network resilience and security.
Fries also said DOCSIS 4.0, now delivering 4- and 8-gigabit speeds in the Netherlands, costs 10 times less than building fiber.
Stephen van Rooyen leads Ziggo Group. Rocio Lorenzo just started as Telenet CEO, replacing John Porter, who is retiring after over thirty years and will stay until year-end.
Next up: confidential prospectuses with the SEC and the AFM in December, and a Capital Markets Day where management will lay out the free cash flow bridge.
