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Liberty Global (NASDAQ:LBTYA) announced Monday that it has acquired a 4.92% stake in Vodafone (NASDAQ:VOD).
The company’s CEO, Mike Fries, labeled the purchase as an “opportunistic and financial investment” in the British telecom group.
He added that the firm believes, like many others, that “Vodafone’s current share price does not reflect the underlying long-term value of their operating businesses, or their announced consolidation and infrastructure opportunities.”
Earlier this month, Vodafone posted a steeper-than-expected slowdown in its third quarter.
Vodafone’s London-listed shares (LON:VOD) have declined over the past few years and are down more than 32% in the last 12 months. However, today’s news pushed it over 2% higher in the London session. Its Nasdaq-listed shares are up almost 5% so far on Monday.
Liberty acquired 1.34 billion shares in Vodafone and needed equity funding of around £225 million (£1 = $1.2134). The company also said it does not intend to seek a board seat and it is not considering an offer for Vodafone.
The investment in Vodafone is part of Liberty Global’s investment portfolio of more than 75 companies and funds across content, technology, and infrastructure. Its portfolio includes stakes in companies such as ITV (LON:ITV), Televisa Univision, AtlasEdge, Plume, and the Formula E racing series.
