Liberty Global Raises Stake in Telenet to 58.4%

Liberty Global (LBTYA, LBTYB), controlled by billionaire telecommunications pioneer John Malone, said it has increased its stake in Telenet Group Holding NV (TNET.BT, TLGHY) to about 58.4%, as Mr. Malone continues an effort to consolidate control of the Belgian cable-television operator.

Liberty Global last month made an official bid of 35 euros ($45.30) a share, or roughly $2.5 billion, for the Telenet shares it didn't already own. Last week, two of Telenet's top five outside investors said they wouldn't accept the offer, posing a challenge for Liberty.

The U.S. company wants to increase its stake in part so it can reap synergies from managing Telenet in a more coordinated fashion with its other European holdings. According to Belgian corporate-governance rules, if it can boost its stake into the 70% to 75% range, Liberty Global's ability to dictate moves at Telenet like mergers and share buybacks would increase dramatically. Liberty Global previously held a stake of just over 50%.

The company said about 9.5 million ordinary shares and 3,000 warrants were tendered into the voluntary and conditional cash offer launched by its subsidiary, Binan Investments B.V., on Dec. 18 for the outstanding shares and other securities giving access to voting rights of Telenet.

Telenet recently had about 113.3 million shares outstanding, according to FactSet.

"We remain committed to investing in growth opportunities for Telenet, maintaining its position as a leading innovator in the Belgian market, and delivering best-in-class services to its customers," Liberty Global President and Chief Executive Mike Fries said. "We believe that this is the right time for Telenet to be more closely integrated within our pan-European platform and in an environment where scale is paramount, we believe that closer integration will benefit all Telenet stakeholders."

Class A shares closed of Liberty Global edged down three cents to $66.74 after hours. The stock is up 57% over the past 12 months.

American depositary shares of Telenet closed at $35.77 on Monday, and the stock is up 34% over the past 12 months.

Write to Debbie Cai at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires