Altice shares skyrocket following founder Drahi’s takeover offer

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PARIS :
The billionaire founder of Altice Europe, Patrick Drahi, has offered to buy back all the shares he does not already own in the telecoms and cable group, as part of an agreement valuing the group at 4.9 billion euros ($ 5.8 billion).

Drahi, Altice’s largest shareholder, behind the mobile phone operator SFR in France, will offer 4.11 euros per share in cash, a premium of 23.8% compared to their closing price on September 10, said the firm in a press release.

The group’s shares had jumped more than 25% to 4.16 euros at 8:35 GMT.

The move comes after years of investor watch over Altice Europe’s high debt levels, which weighed on its share price, though the company recently reduced that burden and gained ground with subscribers by France.

The Amsterdam-listed company and Drahi’s buyout vehicle Next Private said in a joint statement that the offer was aimed at reducing share price volatility as well as costs.

“The company can better focus on the long term after delisting in a completely private setting,” they said, adding that the Altice Europe board had recommended the offer.

Franco-Israeli businessman Drahi owns 39.85% of Altice Europe, according to data from Refinitiv.

He built the group through acquisitions in France and also set up in the United States, buying Cablevision and Suddenlink Communications and listing the unit as Altice USA in 2017.

This story was posted from an agency feed with no text editing.

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