Shearman & Sterling is advising Liberty Global on the creation of a first-ever tracking stock under English law for its operations in Latin America and the Caribbean (the Liberty Latin America and Caribbean Group, or “LiLAC Group”). The LiLAC Group will initially have attributed to it Liberty Global’s 100% interests in VTR GlobalCom SpA and VTR Wireless SpA, as well as its 60% interest in Liberty Cablevision of Puerto Rico LLC. The creation of a tracking stock is subject to various conditions and is expected to take approximately five months to complete.
The structure will enable Liberty Global to retain the advantages of doing business as a single company and, at the same time, create “pure-play” European and Latin American equities.
Liberty Global is the largest international cable company with operations in 14 countries.
Shearman & Sterling also represented Liberty Global in the $23.3 billion acquisition of Virgin Media last year.
The Shearman & Sterling team included partners George Casey (New York-Mergers & Acquisitions), Jeremy Kutner (London-Mergers & Acquisitions), Laurence Bambino (New York-Tax), and Robert Katz (New York-Mergers & Acquisitions); counsel Simon Little (London-Mergers & Acquisitions), Harald Halbhuber (New York-Capital Markets), Ethan Harris (Washington, DC-Tax), Simon Letherman (London-Tax), Richard Alsop (New York-Capital Markets), and Michael Scargill (London-Mergers & Acquisitions); and associates Gregory Gewirtz (New York-Mergers & Acquisitions), Jack Prytherch (London-Tax), Isla Smith (London-Mergers & Acquisitions), Diana Berisha (New York-Corporate) and Gerald Feige (Washington, DC-Tax).