Altice USA has agreed to sell just under half of its Lightpath fibre enterprise business to Morgan Stanley Infrastructure Partners, in a deal that implies an enterprise value of USD 3.2 billion. The transaction is expected to close in the fourth quarter.
Under the agreement, Altice USA will sell 49.99 percent of Lightpath for about USD 2.3 billion in gross cash proceeds, or USD 1.1 billion after tax and initial debt repayment. It will retain the remaining 50.01 percent and keep control of the company.
Altice USA said the cash will support ongoing and new growth initiatives at Lightpath, improve the unit’s operational performance and provide strategic and financial flexibility, with the aim of creating value and ensuring long-term growth.
The company will use part of the net proceeds to pay down debt so that the transaction is at least leverage neutral to wholly-owned unit CSC Holdings. Remaining proceeds will either be used to pay back more debt or to buy back Altice USA shares.
The company said it will provide more details about the transaction when it reports its second quarter results on 30 July.
