Numericable issuing new shares ahead of SFR acquisition

Numericable’s LaBox Fibre

French cable operator Numericable is issuing €4.7 billion in preferential shares to help finance its acquisition of SFR, conditional approval for which was secured this week from the country’s competition authority.

The shares will be priced at €17.82, with 15 new shares being issued for each seven existing shares in the company. Each shareholder will receive a preferential right to subscribe to the new shares. The price implies a discount of 62.96% on the closing price of Numericable’s shares on October 27 and a 35.1% discount on the theoretical ex-rights price.

The acquisition of SFR will be put to an extraordinary meeting of Numericable’s shareholders on November 27.

Numericable is acquiring SFR for €13.5 billion. Post-completion, Vivendi will hold a 20% stake in the combined entity. Altice France, which holds a 74.59% stake, has committed to subscribe to 75.51% of the new share issue.