Cut-price call

11 Sep 2020 By Ed Cropley Follow @edwardcropley

The Franco-Israeli billionaire wants to take his European telco private. His offer, which values Altice’s equity at 4.9 bln euros, looks low. But the company’s eye-watering leverage, with 30 bln euros of debt, makes it hard for Drahi to pay a more respectable valuation multiple.

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Altice Europe said on Sept. 11 that founder and top shareholder Patrick Drahi had offered to take the French telecommunications and cable group private.

Drahi’s cash offer of 4.11 euros per share represents a 23.8% premium to Altice’s closing share price on Sept. 10, and a 16.5% premium to its volume-weighted average over the last 180 days.

Drahi has a roughly one-half economic stake in Altice and controls 78% of its voting rights. He has financing in place for the roughly 2.5 billion euros needed to buy the rest of the company.

Altice’s Amsterdam-listed shares were up 26% to 4.17 euros at 0830 GMT on Sept. 11.

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