Patrick Drahi revives sale of stake in German broadband network
Franco-Israeli telecoms tycoon launches latest effort to reduce $50bn debt pile
Telecoms tycoon Patrick Drahi has relaunched the sale of his 50 per cent stake in German superfast broadband network OXG Glasfaser, as the French-Israeli billionaire continues to explore ways to cut his debt pile.
Drahi, whose Altice unit partnered with Vodafone’s German operation to launch the network in 2023, sent teaser documents to buyers in recent weeks, according to three people familiar with the matter. OXG is valued at about €2bn, according to estimates from New Street Research.
The attempted sale, which follows an earlier effort to find a buyer last year, comes as Drahi explores options to relieve a debt pile of more than $50bn. The tycoon is considering a sale of his €7bn French fibre network XpFibre and in October rejected a €17bn bid for French mobile operator SFR.
OXG committed to spending €7bn to roll out fibre broadband to more than 7mn homes in Germany over a six-year period following its launch in March 2023. However, progress has been slow, with the network reaching just 500,000 homes by the end of 2025. The speed of the network rollout is expected to accelerate this year.
Infrastructure funds such as Antin Infrastructure Partners, which lost out to Drahi when the network was launched, could be interested in a renewed offer, according to a person familiar with the matter. Antin declined to comment.
However, any agreement to sell his stake will require Drahi to get approval from Vodafone, which may complicate an attempt at a quick sale process. Vodafone declined to comment.
Drahi, who built a telecoms empire including operations in France, Portugal and the US via a $60bn debt-fuelled acquisition spree a decade ago, has come under increasing pressure to refinance and restructure his debts due to rising interest rates.
Last year he finalised a deal with creditors to Altice France to cut the company’s debt burden from €24bn to €15.5bn, while a similar deal could be struck to reduce the €8bn of debt held against his Altice International operation.
In November the billionaire infuriated Altice International’s creditors by moving the bulk of the group’s assets — including those in Portugal and the Dominican Republic — out of their group of collateral, meaning they could not call on them should the debt not be repaid.
The move was seen by analysts as a threat to creditors ahead of a potential restructuring, in order to generate a more favourable deal for Drahi.
James Ratzer, analyst at New Street Research, said that although investors had been “sceptical” about other German fibre investments, OXG was a more attractive opportunity.
“We are more optimistic of better returns [from OXG] given the potential to build a longer-term monopoly,” he added.
Altice did not immediately respond to a request for comment.