Tech
ntl completes sale of broadcast division
Published Monday, Jan 31 2005, 21:54 GMT | By Darren Shelley
ntl today announced that it had concluded the sale of its broadcast division to a consortium led by Macquarie Communications Infrastructure Group.
Proceeds of the sale were £1.27 billion ($2.30 billion), subject to a final working capital adjustment. ntl intends to use up to £475 million of the proceeds to repurchase its common stock and £500 million to repay debt outstanding under its £2.17 billion credit facility. The company will retain the balance for general corporate purposes.
Simon Duffy, Chief Executive Officer of ntl, said: "The closure of this transaction enables ntl to concentrate all its resources on growing and improving its UK communications and content distribution business. Our decision to launch a stock repurchase programme, together with our intention to use future surplus cash flow after normal investment requirements to make additional stock repurchases over time, demonstrates the company’s commitment to maintaining both a clear focus on its existing lines of business and an efficient capital structure."
Proceeds of the sale were £1.27 billion ($2.30 billion), subject to a final working capital adjustment. ntl intends to use up to £475 million of the proceeds to repurchase its common stock and £500 million to repay debt outstanding under its £2.17 billion credit facility. The company will retain the balance for general corporate purposes.
Simon Duffy, Chief Executive Officer of ntl, said: "The closure of this transaction enables ntl to concentrate all its resources on growing and improving its UK communications and content distribution business. Our decision to launch a stock repurchase programme, together with our intention to use future surplus cash flow after normal investment requirements to make additional stock repurchases over time, demonstrates the company’s commitment to maintaining both a clear focus on its existing lines of business and an efficient capital structure."
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