Liberty Global plc has struck a deal to sell its UPC Austria business to Deutsche Telekom AG unit T-Mobile Austria GmbH for a total enterprise value of about €1.9 billion, subject to debt and working capital adjustments.
Under the agreement, the cable giant will provide several transitional services to T-Mobile Austria, mainly those related to network and IT functions, for up to four years. It will also allow T-Mobile Austria to use the UPC brand for up to three years.
The merged entity is expected to step up competition with larger Austrian operators such as Telekom Austria Group's A1 Telekom Austria, Liberty Global CEO Mike Fries said.
Deal completion is expected in the second half of 2018, subject to regulatory approval. Liberty Global intends to use the sale's proceeds for general corporate purposes, including business reinvestments as well as support for the company's share buyback program.
LionTree Advisors provided financial advice to Liberty Global on the deal.