France’s Altice is restructuring its business as it seeks to pursue additional acquisitions.
The firm on Friday announced that it will merge its existing assets into a newly-created subsidiary in the Netherlands, Altice N.V., whose shares will be listed on Euronext Amsterdam (AMX). Prior to the merger, Altice plans to transfer all of its assets to Altice Luxembourg, which will be controlled by the Dutch entity.
"Pursuant to the merger, the group will benefit from a powerful equity acquisition currency without prejudicing voting control of the company’s founding shareholder group," said Altice group CEO Dexter Goei.
"This will further strengthen Altice’s position in the next phase of value-enhancing growth," he added.
Altice has been active in the M&A market recently, acquiring French mobile operator SFR in 2014, and adding Portugal Telecom and U.S. cableco Suddenlink to its portfolio this year.
It made a bid for Bouygues Telecom at the start of this week but its offer was rebuffed by the French telco on Tuesday.
However, on Thursday Altice reiterated its bid, revealing that it is prepared to pay €10 billion for Bouygues Telecom – €9 billion in cash and the remainder in stock.
"Altice takes note of the decision of the board of directors of Bouygues and regrets that the board has not once, either through its advisers or through its management teams, sought any details or explanations from Altice regarding the offer before being presented to the board," the firm said.
Altice added that in order to smooth the regulatory path for a takeover of Bouygues Telecom it has entered into talks with Free Mobile parent Iliad regarding the transfer of certain assets. It also pledged to maintain employment levels at the company, to continue investing in fibre, and to "fully participate" in France’s upcoming auction of 700-MHz spectrum.
