On Thursday, the two Companies namely European telecoms group Altice and U.S. cable TV operator Cablevision has agreed a deal worth $17.7 billion including debt. Altice will buy Cablevision for a mix of cash and shares.
Patrick Drahi, French-Israeli billionaire and Altice founder, built a telecoms and cable empire few years ago in France, Portugal and Israel. Drahi expanded his business in the US in May by buying a small regional cable group Suddenlink for $9.1 billion and said he plans to expand further from here.
Drahi managed to persuade the Dolan family, owners of Cablevision, to part with the operator for $34.90 in cash per share which is a 22 percent premium on Wednesday’s closing price of $28.54. Altice stated that the acquisition of Cablevision represents Altice’s next step in the U.S. market after the purchase of Suddenlink earlier this year.
Altice expanded across Europe’s television and radio in recent months and plan to become the owner of Newsday newspaper and local news channel News 12 Networks. In fact, Cable has 3.1 million audiences in New York, New Jersey and Connecticut area.
BC Partners and CPP Investment Board, two investment funds, have also agreed to purchase one-third of Cablevision in order to help pay for the deal. JP Morgan, Barclays and BNP Paribas have consigned to finance the deal and advised Altice on it. On the other hand, Cablevision was advised by Bank of America Merill Lynch, Guggenheim Securities and PJT Partners.
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