LB LBTYA Liberty Global Ltd. Class A Common Shares Loading... : Investor Sentiment and Bull/Bear Views

Liberty Global appoints Stephen van Rooyen as CEO of its Ziggo Group subsidiary ahead of the company's planned listing on the Amsterdam stock exchange.

Liberty Global appoints Stephen van Rooyen as CEO of its Ziggo Group subsidiary ahead of the company's planned listing on the Amsterdam stock exchange.

Rich's pitch is that Liberty Global is a sum-of-the-parts story with a hard catalyst: the stock trades around $12 while the upcoming 100% spin-off of Ziggo Group should be worth $12-$14 per share. The stub has about $5 per share of cash and $10 per share of public/private investments; even haircutting the investments 50% gives roughly $10 of value, plus VMO2 worth at least ~$3, for total fair value of $25-$30. The spin forces the market to value Ziggo independently within 18 months to two years, the dividend/deleveraging support value, and cash/investments provide downside protection. Risks include weak operating trends and management/board credibility.

Liberty Global trades as a classic value play: its European telecom business generates $22B of revenue and $8B of EBITDA, but management believes it is undervalued and underappreciated. The strategy is to unlock value by bringing assets to local public markets, where investors who want dividends and national champions may pay better multiples, and management points to positive momentum in the telecom businesses and its sports, media, and infrastructure portfolio.