Liberty Global: Management Heads in Right Direction With Sunrise Spinoff, but More Needed

Narrow-moat Liberty Global is taking the right steps to address its undervaluation and crystallize the value of its businesses and assets. Management announced many changes in a long strategic update, with the most important being the tax-free spinoff of Sunrise, its Switzerland telecommunications business, to shareholders. Sunrise will be listed on the SIX Swiss Exchange in the second half of 2024. Also, management will inject $1.7 billion in Sunrise to reduce its financial leverage and make it more attractive as a publicly listed entity. Once spun off, Sunrise will distribute a dividend to shareholders, which is a surprise, considering that Liberty Global has never distributed one.