Liberty Global To Sell Most Of Chellomedia To AMC Networks For $1.04 Bln

(RTTNews) - U.S. cable group Liberty Global Plc. (LBTYA, LBTYB, LBTYK) Monday announced an agreement to sell substantially all of its international content division Chellomedia to cable television network AMC Networks Inc. (AMCX) for 750 million euros or $1.035 billion.

The assets being sold include Chello Multicanal, Chello Central Europe, Chello Zone, Chello Latin America and Chello DMC.

Additionally, Chellomedia's stakes in its joint ventures with CBS International, A+E Networks, Zon Optimus and some other partners are also part of the divestment. Liberty Global will retain its Dutch premium channel business, which consists of its Film1 and Sport1 channels.

Liberty Global, which recently acquired Virgin Media Inc., said the consolidated assets to be divested generated 350 million euros or $451 million of revenue during the last twelve-months ended June 30.

Mike Fries, president and CEO of Liberty Global, said: "Chellomedia is one of the largest international channel groups with distribution to more than 390 million households in 138 countries and I have no doubt that the management team will continue to build tremendous value as part of AMC.''

For Liberty Global, the transaction is attractive from a valuation as well as liquidity perspective. It simplifies the business and allows the company to focus on its core markets and more strategic programming opportunities.

For AMC Networks, the acquisition provides an extensive array of television channels that are distributed to over 390 million households in 138 countries.

The channels are across a range of genres, including movie and entertainment networks. They provide long-range opportunities for the company to distribute its original programming from AMC, IFC, Sundance Channel and WE tv across an expansive global footprint.

The acquisition builds on the company's existing international programming business, AMC/Sundance Channel Global, which has seen impressive growth over the past five years. It will continue to deliver AMC Networks' content to its global distribution partners.

Guggenheim Securities, LLC served as lead financial advisor to AMC Networks and provided capital structure and financing advice.

BofA Merrill Lynch has provided a commitment for debt financing for the transaction. It also served as financial advisor to AMC Networks while legal advisors were Clifford Chance.

The transaction is expected to close in the first quarter of 2014 and is subject to limited closing conditions. It is not conditioned on any regulatory approvals.

Morgan Stanley acted as exclusive financial advisor to Liberty Global on the deal.

AMCX closed up 1 percent on Friday at $70.36.

LBTYA settled down 0.1 percent at $80.16.