VMEDO2 - comment

Splitting its network from the customer base will allow Liberty/Telefonica to release some capital by inviting Infrastructure investors in. Also, in addition to capital flowing back to the parent entities, we expect Virgin Media o2 (VMED) to be allowed to retain some proceeds to buy other alt-nets. We do not see this as the precursor to Liberty disposing of VMED. Multiples for infrastructure assets (Open Fibre Italy, TalkTalk and Orange Concessions) have been in the mid-teens and Liberty/Telefonica will be keen to take advantage. The new NetCo will open itself to wholesale users (as Openreach has done), and it currently passes 16.2m premises in the UK. VMED will inject its 5.8m fixed-line customers into the vehicle, providing a revenue stream to the new company. The Nextfibre business will remain separate.

https://www.ft.com/content/91f0800f-034b-4009-b632-8b3c85e37822