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Cable group to apply ‘Altice Way’ strategy to its various cable subsidiaries, acquires network rollout, customer service suppliers.
Altice on Monday made an offer for the 22.25% of French mobile operator SFR it does not already own and unveiled a plan to implement a group strategy spanning its various operations.
Under the all-stock deal, minority SFR shareholders will receive eight new Altice class A shares for every five ordinary SFR shares. Based on Altice’s current share price, the exchange offer values the outstanding stake in SFR at €2.46 billion.
In a statement, Altice said its offer represents an opportunity for SFR shareholders to diversify into higher growth markets with structural and competitive advantages, particularly in the U.S., where Altice owns cablecos Suddenlink and Cablevision.
"The terms of the proposed transaction have been unanimously approved by the board of directors of Altice," said Altice. "The board of directors of SFR Group, including all of SFR Group’s independent directors, has unanimously recommended the offer to SFR Group shareholders."
The deal is subject to approval from France’s Autorité des Marchés Financiers (AMF), and is expected to close in the fourth quarter of 2016.
Meanwhile, in a separate announcement, Altice revealed plans to implement group-wide strategy and best practice in a bid to maximise the operational capabilities of its sprawling telco and content empire.
Called the "Altice Way", it covers network deployment, procurement, customer relationship management, content, services, and R&D.
"Our updated strategy will significantly strengthen our subsidiaries and put them into an even better competitive position to provide our customers with best-in-class services across all of our markets," said Altice CEO Michel Combes.
In line with its new strategy, Altice has agreed to acquire two of its suppliers. The first, Parilis, provides network deployment, upgrade and maintenance services, while the second, Intelcia provides customer services.
"The vertical integration of these suppliers will enhance Altice’s expertise in these areas and ensure further quality of services improvements to its 50 million customers," Altice said.
In addition, Altice said it also intends to launch Altice Studios, which will create original movies and TV series, and Altice Channel Factory, which will create new TV channels.
"We are focused on ensuring that the entrepreneurial, innovative DNA and operational excellence at the core of the Altice model continues to benefit our businesses in the most optimal manner while taking full advantage of the global scale of the group," Combes said.
