Liberty Global to raise around $1 billion through recapitalisation of Virgin Media in Ireland
The move comes as Liberty Global is set to merge its operations in the neighbouring UK with Telefonica for around £31bn
International telecoms giant Liberty Global could raise around $1 billion (£800 million) through the recapitalisation of its Irish operations with Virgin Media.
The cash injection will come as part of Liberty’s deal to merge its UK operations with Telefonica’s O2, according to a report in The Independent.
As part of the £31 billion deal, O2 and Virgin Media will combine its UK operations to create a new 50:50 joint venture with the scope and scale to challenge BT (including Openreach and EE) for market dominance in the UK. As part of the deal Liberty Global will recapitalise its Virgin Media brand in Ireland.
Liberty Global will receive “£1.4bn in total, including approximately £800m from the recapitalisation” of Virgin Media Ireland, the Independent report read.
Virgin Media Ireland provides fixed line, full fibre connectivity to homes and businesses across Ireland. The company told reporters from the Independent that its customers will not be impacted by the move.
“There will be no impact to the day-to-day operations of Virgin Media Ireland. Liberty Global will continue to ensure we have the support, investment and financial firepower to be a major competitive force in Ireland,” a spokesman from Virgin Media Ireland said.