Unitedglobalcom (NASDAQ:UCOMA)
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UGC Agrees to Acquire NTL Ireland
DENVER, May 9 /PRNewswire-FirstCall/ -- UnitedGlobalCom, Inc. ("UGC")
(NASDAQ:UCOMA) today announced that, through one of its affiliates, it has
agreed to buy, subject to regulatory approval, MS Irish Cable Holdings B.V., an
affiliate of Morgan Stanley. MS Irish Cable Holdings B.V. today purchased the
NTL Incorporated broadband operations located in the Republic of Ireland ("NTL
Ireland") from the NTL Group. UGC loaned the funds that MS Irish Cable
Holdings B.V. used to purchase NTL Ireland.
The total purchase price is approximately EUR 325 million excluding an
adjustment for cash in the business at closing, plus a EUR 4 million
arrangement fee and reimbursement of certain expenses and costs of Morgan
Stanley incurred in connection with MS Irish Cable Holdings B.V.'s acquisition
and ownership of NTL Ireland and Morgan Stanley's sale of MS Irish Cable
Holdings B.V. to the relevant UGC affiliate. More information about the
transaction is included in UGC's public filings with the United States
Securities and Exchange Commission (SEC), which can be obtained on the websites
of UGC (http://www.unitedglobal.com/) and the SEC (http://www.sec.gov/).
NTL Ireland is the largest cable operator in the Republic of Ireland, offering
cable television and broadband services to residential customers and managed
network services to corporate customers. At December 31, 2004, NTL Ireland had
approximately 355,300 revenue generating units ("RGUs") including 347,800
digital and analog video RGUs and 7,500 broadband Internet RGUs.
Mike Fries, President and CEO of UGC said, "We are pleased to announce this
transaction in the Republic of Ireland, one of the fastest growing economies in
Western Europe. NTL Ireland is a leading pay-TV provider in Dublin, Galway and
Waterford and is well positioned to participate in the rapid growth of
broadband services. The purchase price represents a multiple of approximately
8.6 times estimated 2005 operating cash flow at the system level. We also
anticipate significant synergies from combining the NTL asset with our existing
Chorus business. In the meantime, we look forward to working with Irish
regulators to get the transaction approved as soon as possible."
About UnitedGlobalCom
UGC is a leading international provider of video, voice, and broadband Internet
services with operations in 16 countries, including 13 countries in Europe.
Based on the Company's operating statistics at December 31, 2004, UGC's
networks reached approximately 16.0 million homes passed and served over 11.6
million RGUs, including approximately 9.4 million video subscribers, 1.4
million broadband Internet subscribers, and 803,500 telephone subscribers.
Forward-Looking Statements: Except for historical information contained
herein, this press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995, including the
Company's plans to acquire NTL Ireland. These forward looking statements
involve certain risks and uncertainties that could cause actual results to
differ materially from those expressed or implied by these statements,
including receipt of regulatory approval for the Company's acquisition of NTL
Ireland, NTL Ireland's ability to continue financial and operational growth at
historic levels, the Company's ability to successfully operate and integrate
the NTL Ireland system, continued use by subscribers and potential subscribers
of the NTL Ireland services, and the Company's ability to achieve expected
operational efficiencies and economies of scale. These forward-looking
statements speak only as of the date of this release. The Company expressly
disclaims any obligation or undertaking to disseminate any updates or revisions
to any forward-looking statement contained herein to reflect any change in the
Company's expectations with regard thereto or any change in events, conditions
or circumstances on which any such statement is based.
Please visit http://www.unitedglobal.com/ for further information or
contact:
Richard S.L. Abbott Claire Appleby
Investor Relations -- UGC Investor Relations -- UGC Europe
(303) 220-6682 +44 20 7 838 2004
Email: Email:
Bert Holtkamp
Corporate Communications -- UGC Europe
+31 (0) 20 778 9447
DATASOURCE: UnitedGlobalCom, Inc.
CONTACT: Investor Relations, Richard S.L. Abbott of UnitedGlobalCom,
Inc., +1-303-220-6682, , or Investor Relations, Claire
Appleby, +44 20 7 838 2004, , or Corporate Communications,
Bert Holtkamp, +31 (0) 20 778 9447, , both of UGC
Europe
Web site: http://www.unitedglobal.com/