ALtice - Suddenly Suddenlink
Following Altice’s announcement of its acquisition of 70% of Suddenlink for $9.1bn and Friday’s indicative pricing of acquisition debt, we publish pro-forma forecasts that imply c.20% accretion to EFCF and 2016E post transaction trading multiples 10.0x EV/EBITDA and 17x EV/OpFCF, i.e. c. -0.2x and -0.8x turn lower vs. headline. Our deep dive into Suddenlink operations suggest a well invested and managed asset, delivering c.6% headline revenue and EBITDA growth over the past two years. We revisit Israeli and Portuguese trends, where markets and organic trends remain tough.