TheChek News Flow

Altice [AMD:ATCT] will not privately purchase any more SFR Group [EPA:SFR] shares until results are announced at the earliest, it is understood. Both groups file 3Q results on 10 November.

There is now a “cooling off” period following Altice’s announcement today (14 October) that it had purchased shares representing 5.21% of SFR off-market, bringing its stake in the French telecoms company to 82.94%, it was said.

Sellers were shareholders who had expressed an interest in accepting Altice’s withdrawn tender offer, it is understood.

On 4 October, the French market regulator declared that Altice’s proposed exchange tender offer – eight new Altice A shares for five SFR shares (a ratio of 1.6/1) – was non-compliant. Altice strongly contests the basis of the AMF’s decision, this news service reported on 6 October. The group is taking legal advice and continues to reserve the right to appeal, it was said.

The cooling off period kicking off today prevents Altice from making further private transactions. Altice is not sure how long it will last, but it will go into a closed period in the run-up to posting its 3Q numbers, it was noted. French regulations stipulate a 15 calendar-day closed period.

Once the 3Q results are known, Altice may re-evaluate whether it can continue making private trades with the 1.6 ratio of Altice to SFR shares, a source briefed said, noting the passing of time and fresh financials may make it difficult to do so.

Altice will not change the 1.6 ratio, it was further said. Transacting off-market at this ratio was becoming increasingly difficult with SFR’s trading price fluctuations following the withdrawn offer, it was noted.

Today’s share prices indicate 1.43 Altice shares for each SFR share, according to Dealreporter analytics. As of 12:00 BST (13:00 CEST), sticking to the 1.6 ratio would imply Altice effectively paying EUR 2.81 per share above SFR’s trading level of EUR 23.77 per share.

Altice did not immediately respond to requests for comment.