KKR and GIP among bidders for Drahi’s multibillion French fibre network
Bids for XpFibre have come in between €6bn and €8bn as Patrick Drahi pursues asset sales to ease debt burden
Private capital firm KKR and BlackRock-owned Global Infrastructure Partners are among the bidders for Patrick Drahi’s controlling stake in superfast broadband network XpFibre, as the telecoms tycoon turns to asset sales to gain breathing room from creditors.
The bidders, which also include infrastructure investor Ardian and GIC-backed Vauban Infra Fibre, have made offers at an enterprise value of between €6bn and about €8bn for XpFibre, according to people close to the process.
Drahi values the French fibre network business in which he owns a 50.01 per cent stake at €9bn, according to another person with knowledge of the process. The rest of XpFibre is owned by Omers Infrastructure, Allianz and Axa Investment Managers.
XpFibre is one of several asset sales being explored by Drahi to cut the more than €50bn debt across his Altice telecoms empire, which was assembled through a series of leveraged takeovers during the low-interest era.
Reducing Altice’s debts has become a pressing issue for Drahi as interest rates have risen.
In October, the Franco-Israeli billionaire rejected a €17bn offer for the majority of French mobile and broadband business SFR from a consortium of the country’s three other mobile operators. While talks are ongoing, a revised bid has not been submitted for what would be a complex carve-up subject to intense regulatory scrutiny.
The FT reported last month that Altice France, which owns SFR and XpFibre, could be forced to restructure its debts within 18 months if it fails to sell assets. The group’s net debt stands at about €16bn.
A sale of XpFibre would give Drahi valuable breathing room. However, previous offers for the business, received in 2024, stalled due to disagreements over valuation and Drahi’s decision to prioritise a financial restructuring of Altice France.
In addition to pursuing asset sales Drahi’s creditors expect him to restructure other parts of his operations. In November, the tycoon infuriated creditors to his international operations by moving the bulk of the group’s assets out of their pool of collateral, meaning they could not lay claim to them should Drahi fail to repay his debts.
Drahi also sued creditors to his US operation, which sits on more than $26bn of debt, last November alleging they had colluded to force him into bankruptcy.
GIP, Ardian, KKR, GIC, Vauban and Altice France declined to comment.