European private equity firm, Cinven, today announces that it has sold its remaining stake in Ziggo N.V (“Ziggo” or the “Company”), the largest cable operator in the Netherlands, realising €329 million of gross proceeds. Cinven has now fully realised its shareholding in Ziggo.

Following the successful listing of Ziggo on the NYSE Euronext in Amsterdam in March 2012, which represented the largest European IPO during the year, Ziggo will have generated total proceeds of €1.7 billion for the Fourth Cinven Fund and a total money multiple of 2.8x.

Cinven led the original investment in Ziggo in 2006 and retained a 27% shareholding in the Company post-IPO. Cinven has successfully sold down its remaining shareholding in the Company in four tranches.

Cinven was able to generate growth in Ziggo and achieve a successful IPO through:

  • the creation of Ziggo through the merger of three separate cable businesses: Kabelcom, Casema and Multikabel (respectively the second, third and fourth largest cable providers in the Netherlands) to form the market leader in the Netherlands with close to three million customers;
  • leveraging Ziggo’s superior network and product proposition to increase market share and grow revenues from existing customers by increasing penetration of triple play bundles and digital pay TV;
  • focusing on growth in the business market by offering services to SMEs
  • more than €1 billion of investment to upgrade the network, enabling Ziggo to offer improved digital TV, high speed broadband and telephony services;
  • strong cash generation which enabled Ziggo to significantly deleverage under Cinven’s ownership;
  • Two highly successful bond offerings in 2010 totalling nearly €2 billion which had a positive impact on Ziggo’s debt maturities and also raised the Company’s profile in the capital markets ahead of a possible exit.

David Barker, Partner at Cinven, commented:

“Cinven’s investment in Ziggo demonstrates the benefit of our considerable sector expertise, having already built a highly successful and substantial cable business, Numericable, in France through a series of acquisitions. It also shows the ability of our local European network to originate investment opportunities by identifying prospects before they come to market.

“Following the recent placing in March, the shares have performed strongly. The success of the placing underscores the strength of support in the Company from public market investors.

“The successful Ziggo IPO positioned the Company well for the next phase of its expansion. We wish its highly capable management team every success as Ziggo continues to maintain its market leading business and generate strong financial performance and provide first class products and services to customers.”

This press release does not contain or constitute an offer for sale or the solicitation of an offer to purchase securities in the United States. The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration under the Securities Act or pursuant to an available exemption from, or a transaction not subject to, the registration requirements of the Securities Act.