Cable Operators

Liberty Buys Into Belgium’s Telenet

10/25/2004 8:17 AM Eastern

Liberty Media International Inc. said Monday that it has agreed to purchase preferred and common equity in Cable Partners Europe’s Callahan Associates Holdings Belgium subsidiary.

CPE will use a majority of the proceeds to repay CPE notes held by LMI. The net additional cash investment by LMI is approximately $23 million.

As a result of the transaction, LMI will be the control shareholder of CAHB, which will hold an approximate 14% indirect interest in Telenet -- the largest cable operator in Belgium, with 2.5 million revenue-generating units located primarily in the Dutch-speaking Flanders region of the country.

The transaction is expected to close before the end of the year.

“Telenet's management and shareholders have built a well-run cable operation that is successfully delivering video, data and voice services throughout the Flanders region in Belgium,” LMI chairman and CEO John C. Malone said in a prepared statement.

“We are very pleased that we were able to constructively restructure CPE so that we can work together with the management team and other shareholders in support of the continued success and growth of the business,” he added.

October