Sunrise Switzerland Looks To IPO

Sunrise Switzerland Looks To IPO

Fri, May 3rd 2024

Sunrise Switzerland announces ambitious dividend plans and IPO details, energizing investors with prospects of financial growth post-Liberty Global spin-off.

KEYSTONE/Steffen Schmidt

Sunrise Switzerland, in anticipation of its upcoming IPO, has unveiled plans to distribute a robust dividend of at least CHF 240 million annually following its spin-off from parent company Liberty Global.

This announcement was made at an analyst conference in the USA by Liberty Global CEO Mike Fries, who also projected an increase in dividends over time.

Liberty Global’s CFO, Charles Bracken, shared insights into Sunrise’s valuation at the conference, estimating the enterprise value of the telecom provider at around CHF 8 billion.

This valuation suggests a significant contribution to Liberty Global’s share price, which currently stands at 16 dollars, with Sunrise accounting for 11 dollars of this figure.

As for the IPO process, Sunrise Switzerland’s CEO André Krause confirmed that preparations are on track, with the listing scheduled for the fall on the SIX Swiss Exchange.

Unlike a typical IPO involving a capital increase, this will be a spin-off, where new Sunrise shares will be distributed to Liberty Global shareholders. These shareholders will have the flexibility to decide whether to retain their stakes in the telecommunications provider.

The planned IPO signifies Sunrise’s “return to freedom” four years after being acquired by Liberty Global, with the Swiss company set to operate independently from the American-British cable network giant.

In conjunction with the spin-off, Liberty Global intends to invest CHF 1.5 billion to reduce Sunrise’s debt.

The move to list Sunrise on the Swiss stock exchange in two share classes further highlights the strategic initiatives underway to maximize shareholder value and enhance the company’s market position as Switzerland’s second-largest telecom group.


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