Altice bumps size of stake in Portuguese fibre-optic network sale; timetable slip
Altice [AMS:ATC] is now open to selling a majority stake in its Portuguese fibre-optic network, four sources familiar with the situation said.
Binding bids were initially due on 20 May, though this has been pushed back, the first and second sources said. Bidders have been asked to revise their non-binding bids, the first source said.
Initially, discussions were over the sale of a 49% stake in the business, though this has evolved into a majority, the first, third and fourth sources said. However, the exact stake has not yet been decided, these three sources said.
Altice is working off a high EBITDA for the business, pointing to an enterprise value of EUR 3bn, said the fourth source. Altice Portugal’s fibre-optic network is expected to have a projected EBITDA figure of EUR 210m for the first year after the sale, as previously reported.
Consortia are forming on this deal, the first and third sources said. A consortium deal might make sense for Cellnex Telecom[BME:CLNX], but this company has its hands full closing a big tower deal, said a fifth source familiar with the situation. Cellnex last week announced it agreed to acquire 10,700 towers in France, Italy and Switzerland from Illiad, a France-based telecoms provider and 2,800 sites from the Swiss MNOSalt in a deal totalling EUR 2.7bn.
Cube Infrastructure, with local DST Telecom, which it acquired two years ago, may need a partner, said a sixth source familiar. Four of the sources questioned Cube’s financial capacity to take part in a deal of this size.
Other bidders in the fray include Antin Infrastructure Partners, said the sources, as well as Stonepeak Infrastructure Partners, said the sixth source and a seventh source familiar. Stonepeak missed out on a deal in the US and just raised capital, noted the sixth source. It is unclear whether Brookfield [NYSE:BIP] and EQT Partners remain in the process.
In Altice’s previous fibre optic network deal, it sold a 49.99% stake in SFR FTTH, its French fibre-to-the-home assets, to AXA IM, Allianz Capital Partners and OMERS Infrastructure in a EUR 1.8bn all-equity deal, as reported.
Amsterdam-headquartered Altice is being advised by Lazard and KPMG, as reported.
Altice, Cellnex, EQT, Cube, DST Telecom, Brookfield and Antin declined to comment. Stonepeak did not reply to requests for comment.