The move comes as Altice becomes increasingly laden by its debt pile of $60 billion, which Altice owner Patrick Drahi looks to cut
French telecoms company Altice has entered into an exclusivity agreement to partner with Morgan Stanley. As part of the deal, Altice France is set to sell a 70% share if its data centre business to Morgan Stanley for €535 million, which will create a new venture named UltraEdge, which will operate 257 data centre and office space across France.
Altice describe UltraEdge as “first nationwide independent distributed colocation provider in France”
The data centre business is valued at €764 million, which is 29 times greater than its pro-forma EBITDA of €26 million. Additionally, SFR will enter into a build-to-suit agreement with UltraEdge, which is expected to raise €175 million in the next 7 years.
According to reports from Los Echos, the two companies are in “advanced discussions”.
“The transaction will strengthen Altice France on its objectives to provide best in class telecommunication services to its clients as the datacenter infrastructure continues to be upgraded, expanded and densified,” said Altice in a statement.
The deal is subject to usual regulatory approval, and the deal is expected to close in the first half of next year.
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