Liberty Global saw its shares jump 8.6% on Wednesday after the company announced an agreement to acquire Vodafone’s 50% interest in the Dutch joint venture VodafoneZiggo. Under the terms disclosed, Liberty Global will pay €1.0 billion in cash and take a 10% equity stake in a new holding called Ziggo Group.
The transaction is expected to complete in the second half of 2026 and will unite Liberty Global’s stakes in VodafoneZiggo alongside Belgian operator Telenet within Ziggo Group. Liberty Global described the combined entity as a regional telecommunications powerhouse in the Benelux region.
Management said the company intends to list Ziggo Group on Euronext Amsterdam in 2027. Following the listing, Liberty Global plans to spin off 90% of the Ziggo Group shares to its shareholders, subject to the requisite approvals. Liberty Global also outlined projected financial benefits, stating the deal should produce synergies and incremental services with a combined net present value of €1 billion.
Mike Fries, Chairman and CEO of Liberty Global, said the deal marks a key milestone in the companys long-term commitment to the Benelux region and aligns with its strategy of unlocking long-term value for shareholders. By combining these assets, he said Liberty Global is creating a regional powerhouse comprised of two converged national FMC champions operating in rational markets - an attractive platform with strong prospects for sustained free-cash-flow generation.
Liberty Global provided a roadmap for reducing leverage, citing plans that include asset sales, mid-term adjusted EBITDA growth, and the generation of adjusted free cash flow. The combined group is targeting approximately €500 million in adjusted free cash flow by 2028.
Operational continuity will be maintained, Liberty Global said, with VodafoneZiggo and Telenet continuing to trade under their existing brands and led by their current management teams. To ensure a stable transition, the companies have agreed long-term service arrangements between Liberty Global and Vodafone.
In a separate development announced alongside the VodafoneZiggo transaction, Liberty Global and partners InfraVia and Telefónica revealed their intention to acquire Substantial Group, described in the announcement as the UKs second-largest alternative fibre provider. That transaction is expected to unlock £3.5 billion in investment for the UK market.
The planned moves position Liberty Global to consolidate regional assets, list a newly formed holding company, and distribute the majority of its shares in that holding to existing shareholders, while pursuing synergies and cash flow improvements it says will support deleveraging.
Note: Information in this report reflects the terms and guidance provided by Liberty Global in its announcement. The timeline, listing and spin-off remain subject to approvals and customary closing conditions.