Cable Operators

Liberty, Sumitomo Form Japan Holding Co.

11/30/2004 8:28 AM Eastern

Liberty Media International Inc. stock reached a new 52-week high ($43.23 per share) Tuesday after the international cable arm of Liberty Media Corp. announced that it will form a holding company for its Japanese cable assets with partner Sumitomo Corp.

LMI stock closed at $43.06 Tuesday, up $1.21 per share, after it said it would contribute its 45% interest in Japanese cable operator Jupiter Telecommunications Co. Ltd. (J-COM) into a new holding company called LMI/Sumisho Super Media LLC. Sumitomo would contribute a 20% interest in J-COM to the holding company.

The deal is expected to close by the end of the year.

Analysts saw the move as a possible step toward an initial public offering for J-COM.

“This move may allow an IPO of a Japan-only trading vehicle that can be used as acquisition currency for the looming wave of potential consolidation that investors in [LMI] have already widely been expecting as part of the [LMI] growth story in Japan,”J.B. Hanauer & Co. analyst David Joyce wrote in a research note.

According to a press release, subject to certain conditions, Sumitomo is required to contribute substantially all of its remaining 12% ownership interest in J-COM to Super Media during the year following the closing date.

Super Media will be managed by a management committee consisting of two members, with LMI and Sumitomo each appointing one.

Want to read more stories like this?
Get our Free Newsletter Here!
August

Cloud Summit

Raleigh Marriott City Center, Raleigh, NC

October