Liberty Global subsidy Telenet has entered into a definitive agreement to acquire BASE Company, the third-largest mobile network operator in Belgium in an all cash transaction valuing BASE Company at €1.325 billion.
Telenet has been an active player in Belgium’s mobile market through an MVNO since 2006, and has grown its mobile subscriber base to 895,000 at year-end 2014 on the back of its success with its King and Kong offerings.
The acquisition of BASE Company, with nearly 3.3 million mobile subscribers and adjusted revenue of €690 million for 2014, fits well in Liberty Global’s mobile strategy in Belgium, as it allows Telenet to continue to provide ubiquitous connectivity for its and BASE Company’s customers.
“We fully support Telenet’s acquisition of Base, which represents a cost-effective and unique opportunity to expand Telenet’s mobile and fixed business in Belgium,” comments Mike Fries, CEO of Liberty Global. “Not surprisingly, the synergies are substantial and the price at 4.2x OCF is highly accretive to shareholders. Given Telenet’s scale in Belgium it can absorb the smaller Base business quickly and efficiently.”