Warburg Pincus has raised 255 million euros ($312.9 million) via the sale of part of its stake in Dutch cable business Ziggo. In March, Ziggo priced its IPO on NYSE Euronext in Amsterdam at 18.50 euros. This represented the largest European IPO since July 2011.
Warburg Pincus(1) raises €255 million(2) via sale of part of stake in Ziggo
On 20th March, 2012, Ziggo N.V. (“Ziggo”) priced its IPO on NYSE Euronext in Amsterdam at €18.50. This represented the largest European IPO since July 2011.
Today, Warburg Pincus and other investors have successfully completed the placement of a further 29 million ordinary shares of Ziggo at a price of €23.50 per share, resulting in cash proceeds of €255 million for Warburg Pincus(1), excluding the greenshoe.
In total, Warburg Pincus(1) has now raised over €590 million(2) from selling shares in Ziggo and continues to retain a stake of over 22% which is valued at €1,080 million based on the closing share price as at 30 July 2012.
Joseph Schull, head of Warburg Pincus in Europe, commented, “Since its IPO, Ziggo has outperformed the market index and has also produced two sets of strong quarterly results. This placing demonstrates the high level of institutional support for the stock and the company’s successful growth strategy. We remain supportive shareholders in the company and look forward to working with management to build on its successful track record.”
Background on Warburg Pincus’ Investment in Ziggo
Warburg Pincus led the formation of Ziggo through its initial acquisition of Multikabel in December 2005, followed by the acquisition of Casema and @Home along with other investors in September 2006 and January 2007, respectively. Warburg Pincus’ entry into the Dutch cable market through its initial investment in Multikabel followed a proprietary dialogue with Multikabel’s owners and management team and built upon Warburg Pincus’ extensive experience as a cable investor in the United States, the United Kingdom and Emerging Europe.
In May 2008, the three businesses were successfully integrated under a new brand name, Ziggo. Warburg Pincus was instrumental in the creation of the new company and in its subsequent growth and strategic development. Since 2006, €1bn has been invested by the company to upgrade the network and introduce new digital TV, high speed broadband and bundled product offerings to customers.
At the time of the IPO, Joseph Schull commented, “Ziggo is a good illustration of our investment approach. We identified the Dutch cable market as an attractive and growing industry and then created a new national market leader by backing an exceptional management team to acquire and successfully integrate three regional cable companies. We also supported significant capital investment and an ambitious growth strategy. We congratulate the management and employees of Ziggo on their achievements to date and look forward to the company building on its successful track record.”
(1) Any references to Warburg Pincus related to share holdings or proceeds raised are references to WP Holdings IV BV, an affiliate of Warburg Pincus
(2) Gross proceeds before fees and costs
This press release does not contain or constitute an offer for sale or the solicitation of an offer to purchase securities in the United States. The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended, (the “Securities Act”) and may not be offered or sold in the United States absent registration under the Securities Act or pursuant to an available exemption from, or a transaction not subject to, the registration requirements of the Securities Act.