Reuters – Warburg Pincus, Cinven to Sell More Ziggo Shares

Private equity firms Warburg Pincus and Cinven said they would cut their stakes in recently listed Dutch cable operator Ziggo in a deal worth about 446 million euros ($546 million), according to Reuters. Ziggo, which competes with Dutch telecoms group KPN and Liberty Global‘s UPC, raised about 800 million euros for its selling shareholders, including majority owners Warburg Pincus and Cinven, at its IPO when it listed in Amsterdam in March.

(Reuters) – Private equity firms Warburg Pincus and Cinven said on Monday they would cut their stakes in recently listed Dutch cable operator Ziggo in a deal worth about 446 million euros ($546 million), improving the stock’s liquidity.

Ziggo, which competes with Dutch telecoms group KPN and Liberty Global’s UPC, raised about 800 million euros for its selling shareholders, including majority owners Warburg Pincus and Cinven, at its initial public offering (IPO) when it listed in Amsterdam in March.

The two private equity firms and their co-investors said they plan to sell another 18 million shares in Ziggo, cutting their combined stake to 63.9 percent from 72.9 percent.

J.P. Morgan and Morgan Stanley are joint global coordinators and joint bookrunners for the private placement, while Deutsche Bank, UBS and Nomura are joint bookrunners, the firms said in a statement.

“It will improve liquidity,” said analyst Nick Brown at Espirito Santo Investment Bank.

“We believe the increase in liquidity will be received well by investors, many of whom we understand didn’t get any allocations at all (or indeed only small allocations) in the initial IPO due to high demand.”

Ziggo shares closed on Monday at 24.76 euro, virtually flat on the day but up about a third from the IPO price of 18.50 euros.

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