Altice Europe has agreed to sell a 49.99 percent stake in its French tower business and a 75 percent stake in its Portuguese tower assets for a total cash consideration of EUR 2.5 billion. The deals, which have been in the making since the beginning of the year, deliver on the group’s objective to reduce debt with the disposal of non-core operations.
In France, Altice is placing its 10,198 tower sites into a newly formed company called SFR TowerCo. It has entered into an exclusivity agreement with private equity firm KKR for the sale of 49.99 percent of its equity, confirming press reports that emerged earlier this month. Altice France will fully consolidate SFR TowerCo.
The deal gives SFR TowerCo an enterprise value of EUR 3.6 billion, representing 18x its EBITDA. Under the new terms, SFR would commit to a master agreement to use the sites for 20 years. The new company is also committing to invest in 1,200 new towers.
In Portugal, a consortium including Morgan Stanley Infrastructure Partners and Horizon Equity Partners will acquire 75 percent of a newly formed company called Towers of Portugal (ToP), which will own the existing 2,961 sites operated by PT Portugal and will build a further 400 new sites in the coming years.
The transaction values ToP at an enterprise value of EUR 660 million, representing 18.9x its EBITDA. As in France, this deal also covers a 20-year master agreement between PT Portugal and ToP.
Subject to customary conditions, the transaction in Portugal is expected to close during the third quarter, while the deal in France should be finalised during the fourth quarter, subject to the necessary regulatory approvals.
