Liberty Global, who holds interests in Virgin Media O2 and UK free-to-air broadcaster ITV, has taken a 4.92 per cent stake in Vodafone, saying it believes the company’s shares are undervalued.
Vodafone, like numerous other tech companies, has had a tumultuous twelve months, with stock value falling by over 30 per cent.
Mike Fries, CEO of Liberty Global, said of the purchase: “We believe, like many others, that Vodafone’s current share price does not reflect the underlying long-term value of their operating businesses, or their announced consolidation and infrastructure opportunities.
“We continue to remain disciplined about our capital and fully expect that the equity used to fund this investment will be replenished with the sale of certain non-core assets over time.”
Fries isn’t alone in his assessment; French billionaire Xavier Niel took a 2.5 per cent stake in the company in September.
No regulatory approvals are required for an investment at this level. Liberty Global said it does not intend to seek board representation at Vodafone, and “is not considering an offer for Vodafone”.
