13th Feb 2023 19:06
(Alliance News) - Liberty Global PLC on Monday said it has acquired a 4.9% stake in FTSE 100-listed telecommunications company Vodafone Group PLC, believing it to be undervalued.
Liberty Global Chief Executive Mike Fries said the company believes Vodafone's share price "does not reflect the underlying long-term value of their operating businesses".
Liberty Global bought 1.33 billion shares in Vodafone and will fund the investment through a non-recourse financing. It said it required equity funding of GBP225 million.
Shares in Liberty Global were down 1.9% at USD20.88 in New York on Monday, while Vodafone PLC closed down 0.5% at 91.62 pence in London.
At current market prices, the stake purchased by Liberty Global is worth GBP1.22 billion.
Liberty, in partnership with Telefonica SA, owns Virgin Media O2, a rival operator to Vodafone in the UK. It also has investments in companies such as broadcaster ITV PLC and the Formula E racing series.
It becomes the latest high profile shareholder to be attracted to Vodafone, following share purchases by French billionaire Xavier Niel and United Arab Emirates telecoms operator e&.
Liberty said it was not considering an offer for Vodafone.
By Jeremy Cutler, Alliance News reporter.
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