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Drahi launches public offer to take Altice Europe private

Altice Europe boss Patrick Drahi has launched his planned public offer to take the company private. The company, which operates networks and media in France, Portugal and Israel, is currently quoted on the Amsterdam exchange.

Altice Europe founder and majority-owner Patrick Drahi

Drahi is offering €4.11 a share for Altice Europe stock, representing a premium of 23.8% over the September 10 closing price prior to the original announcement of the offer, and a premium of 16.5% over the 180-day average.

Drahi’s Next Private investment vehicle’s offer will expire on January 21 at 17:40 CET. The offer will be the subject of discussion at an EGM of shareholders that has been scheduled for January 7, when a number of resolutions associated with it are expected to be passed.

The Altice Europe administrative board has approved the offer unanimously according to the offer document.

Drahi currently holds a 77.6% stake in Altice Europe and the total value of acquisition of shares is expected to be €2.5 billion.

Altice has experienced something of a rollercoaster ride on the exchange over the last few years, largely due to investor concerns about its level of indebtedness that the company sought to address. The company’s major lines of credit are not due to reach maturity before 2025 at the earliest.

Altice Europe was split off from Altice USA which houses the group’s American cable assets in 2018.

At the time the plan to take the company private was announced, it said that the move was aimed at enhancing e the sustainable and long-term success of its business under private ownership.

The company and Drahi said that they believed that a private ownership structure under Drahi’s 100% control would better serve the “sustainable success of its business and long-term value creation, as the disadvantages of the listing materially outweigh the benefits and the business can more successfully focus on the long-term following delisting in a wholly privately owned set-up”.