Bloomberg News

Warburg, Cinven Said to Add Four Banks for Ziggo’s Planned IPO

February 28, 2012

Feb. 16 (Bloomberg) -- Warburg Pincus LLC and Cinven Ltd., the co-owners of Ziggo BV, added four banks to manage the Dutch cable-television company’s planned initial public offering this year, three people with direct knowledge of the process said.

Nomura Holdings Inc., HSBC Holdings Plc, ABN Amro Group NV and Rabobank Group will act as co-lead managers for the IPO, said the people, who declined to be identified because the negotiations are confidential. The sale could happen as early as the first half, the people said. It may raise more than 1 billion euros ($1.3 billion), one of the people said.

Buyout firms are reviving IPO plans following an equity rally this year after the European sovereign debt crisis forced them to delay sales last year. Warburg and Cinven, both raising new funds, are seeking to return cash to investors.

The four banks will work with the global coordinators JPMorgan Chase & Co. and Morgan Stanley, and the joint bookrunners, Deutsche Bank AG and UBS AG.

Revenue at Ziggo, based in Utrecht, climbed 5.9 percent in the fourth quarter to 378 million euros, as more customers opted for multiple services such as Internet and phone. Its full-year revenue in 2011 was 1.5 billion euros, 7.4 percent more than a year ago, Ziggo said in a statement on Jan. 27.

The company had about 3 million total television customers last year, down 2.6 percent from the previous year, according to the statement. Internet subscribers climbed 9 percent to 1.7 million.

The company, led by Chief Executive Officer Bernard Dijkhuizen, was created five years ago from the merger of three cable operators. Cinven, based in London, and Warburg each invested in predecessors of Ziggo more than five years ago.

Spokeswomen for Warburg and Cinven declined to comment.

--With assistance from Maud van Gaal in Amsterdam. Editors: Jacqueline Simmons, Chris V. Nicholson

To contact the reporters on this story: Zijing Wu in London at zwu17@bloomberg.net; Anne-Sylvaine Chassany in London at achassany@bloomberg.net

To contact the editors responsible for this story: Jacqueline Simmons at jackiem@bloomberg.net; Edward Evans at eevans3@bloomberg.net


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