Liberty Shareholders Approve Spin-Off of LCAPA
The news is now a couple of weeks old, and perhaps overshadowed by Liberty’s interest in Barnes & Noble, but shareholders in Liberty Capital and Liberty Starz have approved a spin-off. Liberty’s stake in Sirius XM currently stands at about 39.596%, down from a 40.15% stake when they registered their preferred stake with the SEC. Liberty tracks their investment in Sirius XM in their Capital Group (LCAPA).
Liberty Media is seeking to spin off Liberty Starz and Liberty Capital as spin-offs that will include the companies formerly tracked by the individual groups (Starz and Capital).
“Starz Group” does not represent a separate legal entity, rather it represents those businesses, assets and liabilities which Liberty has attributed to that group. The Starz Group focuses primarily on video programming and development, acquisition and distribution of content and is comprised primarily of Starz, LLC (“Starz”) and $1,044 million (as of March 31, 2011) of cash, including subsidiary cash. The Starz Group will also include such other businesses, assets and liabilities that Liberty’s board of directors may in the future determine to attribute to the Starz Group, including such other businesses as Liberty may acquire for the Starz Group.
The term “Capital Group” also does not represent a separate legal entity, rather it represents all of Liberty’s businesses, assets and liabilities other than those which have been attributed to the Interactive Group or the Starz Group. The assets and businesses attributed to the Capital Group include Liberty’s subsidiaries: Atlanta National League Baseball Club, Inc. (“ANLBC”) and TruePosition, Inc. (“TruePosition”); and its interests in Sirius XM Radio Inc. (“SIRIUS XM”), Time Warner Inc., Time Warner Cable Inc., Sprint Nextel Corporation and Live Nation Entertainment, Inc. (“Live Nation”). In addition, Liberty has attributed $1,154 million of cash, including subsidiary cash, and $750 million principal amount (as of March 31, 2011) of other parent debt to the Capital Group. The Capital Group will also include such other businesses, assets and liabilities that Liberty’s board of directors may in the future determine to attribute to the Capital Group, including such other businesses and assets as Liberty may acquire for the Capital Group.
The LCAPA spin-off includes the Liberty stake in Sirius XM.
Spencer does this mean that they won’t end up diluting the shareholders of siri/xm???????????
Dean….
What are you referring to? The Liberty Stake remains the same as it was. It is now simply on the path to being in a separately traded company from Liberty.
Does that mean it is going to take more time for Liberty to be able to increase its stake in siri/xm. A little clarification please.
It changes none of that. The Liberty / Sirius XM agreement is the same.
This spin-off does facilitate the possibility that Liberty can do a Reverse Morris Trust.
Nice article, you have told us basically nothing but that’s par for the course, moron.
sclem….
You can not resist this site can you? I simply gave the facts. I have opinion, but that will come in a “deeper look” article. You have been following my every word and move for quite some time now. You should be aware of how I do things….and you call me the moron?
You have a choice of whether to be here or not, or even whether to “waste your time” posting a comment. Clearly you are infatuated with a site you don’t like….but I am the moron.
Cheers Sclem….and you will respond again….I know it, because it appears that I have that type of control over you.
So if someone already owns shares in LCAPA, what happens to those? new trading symbol?
Upon approval from regulators, and a positive outcome to some litigation, your LCAPA will go away and you will get shares of the new spin-off
Sclem is muscle?