Liberty Global Offer for CWJ

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Liberty Global logo beside the Cable & Wireless logo

Shareholders of the telecommunications provider Cable & Wireless Jamaica got their long-awaited offer.
On Friday, December 29, 2017, Liberty Global, the parent company, made an offer to acquire the outstanding 18% at J$1.45 per share, 15% over the current market price.

Liberty Global, the world’s largest international TV and broadband company, acquired CWC in 2016 for US$ 7.4 billion. The acquisition has been the subject of contention between the company and CWJ shareholders, due to the lack of an offer from the multinational corporation.

Liberty Global currently owns 82% of the publicly traded company and according to the Stock Exchanges rules, no individual or organisation should hold more than 80% of a publicly traded company.

CWJ’s performance has been less than stellar. As of September 2017, the company reported a net loss of 172% when compared to same nine months of the previous year. Despite revenues increasing by 9.21%, operating profit decreased by 17%.

The CWJ stock has traded as high as J$1.80 and as low as J$0.70 year to date with an average closing price of J$1.45. The offer made, in my opinion, is satisfactory.

The offer closed January 31.

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