Sunrise (UPC) about to become a “Swiss company” again?

The current American owner of Sunrise (UPC) announced during the night from Friday to Saturday the finalization of the split of its Swiss subsidiary. This financial transaction, approved at an extraordinary meeting of Liberty Global shareholders on October 25, 2024, marks a crucial step in the group’s strategy to maximize its value for investors.

At Sunrise (UPC), everything is first and foremost a financial question The distribution of Sunrise (UPC) shares to Liberty Global shareholders will take place on November 12, 2024. Technically, Liberty Global investors will receive 1 Sunrise Class A share in the form of ADSs (American Depositary Share) for 5 Liberty Global class A or C shares held, and 2 class B ADSs for each Liberty Global class B share, according to this press release.

A return of the facade to Swiss roots

Sunrise Class A shares (UPC) will be listed on the Swiss SIX stock exchange from November 15, 2024, under the symbol “SUNN”. This listing in Switzerland will allow Sunrise to potentially reconnect with its Swiss roots, although its shareholder structure remains international.

Indeed, it is important to note that Sunrise (UPC) will not be entirely “Swiss” in the traditional sense. The company will maintain a dual listing, with its ADSs traded on the New York Nasdaq under the symbol “SNRE” from November 13, 2024. Concretely, initially, American control remains.

A very relative independence

Moreover, although this split theoretically offers the country’s largest cable operator greater operational autonomy, its independence remains relative. The ownership structure, now dispersed among Liberty Global’s former shareholders, will likely maintain a strong Yankee influence on the company’s governance.

The American Mike Fries, CEO of Liberty Global and future president of Sunrise (UPC), emphasizes that this operation will allow Sunrise (UPC) to “continue to provide innovative solutions and superior connectivity to Swiss consumers and businesses”. Nonetheless, Fries’ presence as president confirms continuity in Liberty Global’s strategic oversight of the company.

Future prospects?

Sunrise (UPC) enters this new phase with a questionable financial structure, supported by an investment from Liberty Global of up to 1.5 billion Swiss francs for debt reduction. This financial situation should allow Sunrise (UPC) to continue its activities in telecoms infrastructure in Switzerland. But with what room for maneuver?

The future will tell whether this “independence” will allow Sunrise (UPC) to better adapt to the specificities of the Swiss market while benefiting from its international heritage. Consumers and the Swiss telecoms market will closely follow the evolution of this “new” Sunrise in such a unique Swiss landscape. So far, remember that the UPC Sunrise merger has only benefited foreign shareholders. For customers, nothing should change: profit will come before them.

XS