Liberty Sets Date for Capital, Starz Separation

Author:
Updated:
Original:

Liberty Media has set the date for a shareholder vote on its planned spin-off of Liberty Capital and Liberty Starz, a move that will essentially separate the two tracking stocks from Liberty Media, leaving the remaining tracker - Liberty Interactive - an asset backed security.
Liberty said it would hold a special shareholder meeting at the Denver Marriott South Hotel in Littleton, Colo., on March 31 to vote on the split. Liberty announced last year its intention to spin off the two tracking stocks. Liberty Capital houses Liberty's controlling interest in the Atlanta Braves Major League Baseball Team and passive investments in several media and technology companies. Liberty Starz includes the Starz Entertainment premium cable channel, Starz Media and Liberty Sports Interactive.
According to a proxy statement filed Jan. 28, Liberty Media will redeem all of the shares in both Liberty Capital and Liberty Starz and exchange them on a one-for-one basis for shares of a new entity called Splitco. Both Liberty Capital and Liberty Starz will continue to trade as tracking stocks and will contain the same assets as before the split. While the deal will not materially change Liberty Starz or Liberty Capital, the end result of the transaction will be the conversion of Liberty Interactive from a tracking stock into an asset-based security.
Liberty Interactive currently houses Liberty's interests in QVC Inc., Provide Commerce, Inc., Backcountry.com, Inc., BUYSEASONS, Inc., Bodybuilding.com, LLC, Evite, Inc. and GiftCo, Inc., Expedia, Inc., HSN, Inc., Interval Leisure Group, Inc. and Tree.com, Inc.
The actual split won't occur until Liberty Interactive resolves a lawsuit filed last year in Delaware by some bondholders to block the deal. Liberty has said it is confident in its position and expects a ruling in late February, with the potential for appeal possibly pushing resolution of the matter to sometime in May.

Related