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The debt of the new entity will amount to € 10.4 billion, for a cumulative gross operating income of € 3.3 billion surplus.
How small cable operator Numericable (worth € 6 billion including debt) account he buy SFR, usually valued at around 15 billion euros?
The outline of the project investor Patrick Drahi have already filtered, and were confirmed to "Echoes" by a source close to Altice, its holding company , parent company of Numericable: If everything goes according to the plans of the contractor Vivendi will be paid in cash to the tune of € 11 billion, of which 8 billion euros of debt. "A pool of 8 French and international banks has already undertaken to ensure these amounts," promises this source. Are added 32% stake in the new set - worth 3 billion euros in the event that there would be no synergy between the two groups. Numericable entered the stock market in November should conduct a capital increase of € 3 billion, which will be underwritten by three quarters the concert Drahi-Carlyle-Cinven, with preferential rights. There will be more than € 750 million up to the public, which should not be a tour de force. For its part, the parent company Altice, worth 14 billion euros at the Amsterdam Stock Exchange, will finance itself on the markets.
Debt concern
Within the government, we're worried about the amount of debt. If it is too high in relation to the repayment capacity, investment will suffer and jobs. Redemptions leverage , Patrick Drahi has increased in past companies, do not have good press. In the proposed scheme, the total debt of the new entity will amount to € 10.4 billion - billion with Numericable 2.4, but without the debt of SFR, which will remain at Vivendi.
However, the side of the potential buyer, it is reassuring and said that the gross operating surplus accumulated two companies amounted to € 3.3 billion: "The ratio of debt to EBITDA is slightly above 3, and even less if we take into account the potential synergies, which can reach 1 billion euros of cash flow in four to five years, "said the source close to Altice.
"This is an aggressive assembly, for its part considers an analyst, but the repayment ability is very good. "For him, the debt level is justified by the fact that the new entity will be considered a player in the cable and not a mobile operator:" In the cable in Europe, you can have multiple debts on Ebitda up to four times because we consider that cable operators are increasing their investments and help bring new customers, "he explains.
Conversely, a group of telecommunications, such as Orange, "only invests to maintain its sales," he adds. The debt tolerance is much lower, at most 2.5 times the EBITDA.