European telecoms group Altice to restructure

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Altice Logo

The European telecoms group said last week that it would restructure by way of merging with its new Dutch company Altive NV, in order to strengthen capacity for future acquisitions.

Altice Group is ran by billionaire Patrich Drahi, who has been buying companies left, right and centre for the past 18 months. The group has purchased four companies over the past 18 months and made a bid for rival Bouygues Telecom which was ultimately rejected.

Altice restructuring

Under the restructuring plan, shareholders in Altice will receive two kinds of new shares, and voting rights to replace existing shares, as long as they are approved at the extraordinary general meeting next week.

Altice must transfer most assets and liabilities to a new subsidiary in Luxembourg, Altice Luxembourg SA, before the changes can be accepted. The new Dutch company will the the parent of Altice Luxembourg.

“The group will benefit from a powerful equity acquisition currency without prejudicing voting control of the company’s founding shareholder group”, Chief Executive Dexter Goei said.

“This will further strengthen Altice’s position in the next phase of value-enhancing growth”.

Drahi’s cable company Numericable beat Bouygues last year to acquire Vivendi’s SFR, the second largest French mobile company, to create Numericable-SFR.

Altice Group is a multinational cable and telecommunications company with operations in France, Israel, Belgium, Luxembourg, Portugal, in French Overseas Territories and Switzerland.

SOURCE: Reuters.

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