Altice on Tuesday announced that it has agreed to sell a 30% stake in Cablevision for US$1 billion to funds advised by BC Partners and Canada Pension Plan Investment Board (CPPIB), the same investors that it will partner with in Suddenlink, the other U.S. cable operator it recently agreed to buy.
Alongside the capital raising and debt issue Altice announced earlier this month, the deal means the acquisition of Cablevision is fully funded.
The French firm agreed to buy Cablevision for $17.7 billion in mid-September. Presuming regulatory approvals are forthcoming, it expects to close the deal in the first half of next year.
"We are extremely pleased that BC Partners and CPPIB – our future partners in Suddenlink – have also agreed to invest alongside us in Cablevision and to continue to accompany Altice in its long-term oriented growth and investment strategy in the U.S.," said Altice CEO Dexter Goei.
Altice brokered a deal to acquire a 70% stake in Suddenlink from BC Partners, CPPIB, and Suddenlink’s management for $9.1 billion in May. Under the terms of the deal, BC Partners and CPPIB will retain a 30% stake in the company.
The shareholder agreement between Altice, BC Partners and CPPIB for Cablevision is "on similar terms" to the one they inked for Suddenlink, Altice said.
Shane Feeney, managing director, head of direct private equity at CPPIB, described Tuesday’s deal as "an attractive opportunity to invest in a sector that we know well," while BC Partners co-chairman and managing partner Raymond Svider said his firm is "highly confident in Altice’s ability to further enhance network quality, increase customer satisfaction, and meaningfully improve financial performance at Cablevision."
