Altice shares soar on founder Drahi's buyout offer1 min read . Updated: 11 Sep 2020, 07:07 PM IST
- Shares in the group had surged more than 25% to 4.16 euros, while Drahi, the largest shareholder in Altice, which is behind mobile phone operator SFR in France, will offer 4.11 euros a share in cash
- Franco-Israeli businessman Drahi owns 39.85% of Altice Europe, according to Refinitiv data
PARIS : Altice Europe's billionaire founder Patrick Drahi has offered to buy all the shares he does not already own in the telecoms and cable group, in a deal valuing the group at 4.9 billion euros ($5.8 billion).
Drahi, the largest shareholder in Altice, which is behind mobile phone operator SFR in France, will offer 4.11 euros a share in cash, representing a premium of 23.8% over their closing price on Sept. 10, the firm said in a statement.
Shares in the group had surged more than 25% to 4.16 euros by 0835 GMT.
The move comes after years of investor scrutiny over Altice Europe's high debt levels, which have weighed on its share price, although the company recently reduced that burden and has gained traction with subscribers in 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 business can more successfully focus on the long-term following delisting in a wholly privately owned set-up," they said, adding that Altice Europe's board recommended the offer.
Franco-Israeli businessman Drahi owns 39.85% of Altice Europe, according to Refinitiv data.
He built up the group through acquisitions in France and also branched into the United States, purchasing Cablevision and Suddenlink Communications and listing the unit as Altice USA in 2017.
This story has been published from a wire agency feed without modifications to the text.