Liberty Global to Acquire KBW

Liberty Global, Inc. LBTYA today announced that it has entered into an agreement to acquire Kabel BW Erste Beteiligungs GmbH, the third largest cable TV operator in Germany controlled by EQT Funds IV and V. KBW provides television, broadband internet and telephony services in the German federal state of Baden-Württemberg, which is one of the most prosperous regions in Europe. As of December 31, 2010, KBW's broadband communications network passed 3.7 million homes and served 2.4 million customers who subscribed to 3.9 million basic cable, pay TV, telephony and broadband internet services.1 Liberty Global will acquire KBW through a series of transactions for a total consideration of approximately €3.16 billion ($4.48 billion), excluding transaction costs. This represents a purchase price multiple of approximately 8.1 times our estimate of KBW's 2011 EBITDA2 under IFRS,3 as adjusted for the projected annual impact of synergies that may be realized following the full integration of the acquisition. The transaction is subject to regulatory approval and is expected to close in the second half of 2011. EQT has decided that KBW and its holding company will immediately undergo a recapitalization, in which it is targeting to issue approximately €2.25 billion ($3.19 billion) in new debt financing. The new capital structure will be assumed by LGI upon completion of the transaction.