Vivendi and Altice-Numericable sign definitive SFR agreement

The Vivendi office is seen in Paris on Wednesday, May 17, 2006.Vivendi has signed a definitive agreement with Altice-Numericable relating to its sale of French telco SFR, following a “very constructive dialogue” with the concerned Employee Works Councils.

The news comes after Vivendi agreed to sell SFR early last month to Altice-Numericable, which fended off competition from rival bidder Bouygues.

The Vivendi board unanimously selected the Altice-Numericable, saying it will create the highest growth potential and generate the highest value for its customers, employees and shareholders.

At closing, Vivendi will receive €13.5 billion and will keep a 20% stake in the newly combined firm, which it will be able sell at a later stage. It will also receive an earnout of €750 million depending on the future financial performance of the new group. However, the deal is still subject to approval from the relevant administrative authorities.