BRIEF-Liberty Global Says Co, Telefonica Merge UK Operations

Liberty Global Plc: * LIBERTY GLOBAL AND TELEFONICA TO MERGE THEIR U.K. OPERATIONS CREATING THE LEADING FIXED-MOBILE PROVIDER IN THE COUNTRY

* 50-50 JOINT VENTURE BRINGS TOGETHER VIRGIN MEDIA, U.K.'S FASTEST BROADBAND NETWORK, AND O2, COUNTRY'S LARGEST MOBILE PLATFORM * INVESTING £10 BILLION IN U.K. OVER NEXT FIVE YEARS

* JOINT VENTURE EXPECTED TO DELIVER SUBSTANTIAL SYNERGIES VALUED AT £6.2 BILLION BY FIFTH FULL YEAR POST-CLOSING * VALUATION FOR BOTH BUSINESSES, WITH O2 VALUED AT £12.7 BILLION AND VIRGIN MEDIA VALUED AT £18.7 BILLION, BOTH ON A TOTAL ENTERPRISE VALUE BASIS

* O2 TO BE TRANSFERRED INTO JV ON A DEBT-FREE BASIS, WHILE VIRGIN MEDIA TO BE CONTRIBUTED WITH £11.3 BILLION OF NET DEBT & DEBT-LIKE ITEMS * JV TO TARGET ONGOING NET LEVERAGE OF 4.0-5.0X, WITH PROCEEDS FROM FUTURE FREE CASH FLOW TO BE DISTRIBUTED EQUALLY BETWEEN COS

* DEAL TO INCLUDE SERIES OF RECAPITALIZATION FINANCINGS PRIOR TO CLOSING TO REACH ITS TARGET CLOSING NET LEVERAGE RATIO FOR JV OF 5.0X * LIBERTY GLOBAL, TELEFONICA ANTICIPATE THAT CLOSING OF TRANSACTION IS EXPECTED TO TAKE PLACE AROUND MIDDLE OF 2021 Source text for Eikon: Further company coverage: