Altice USA is being spun off from its parent company, which is being renamed Altice Europe and will have a reorganized structure.
Altice NV is separating its U.S. business through a distribution in kind to its shareholders. Following this proposed transaction, the two companies will be led by separate management teams. Patrick Drahi, founder of Altice, will retain control of both companies through Next. Post-separation, Drahi will serve as president of the board of Altice Europe and chairman of the board of Altice USA.
Altice NV is being renamed Altice Europe, operating under a revamped structure: Altice France, Altice International and newly formed Altice Pay TV subsidiary.
Drahi said: “The separation will allow both Altice Europe and Altice USA to focus on their respective operations and execute against their strategies, deliver value for shareholders, and realize their full potential. Both operations will have the fundamental Altice Model at their heart through my close personal involvement as well as that of the historic founding team.
“Altice Europe has tremendous opportunities as we deliver on our operational aspirations around much improved customer service and monetizing our premium infrastructure and content assets. Altice Europe has a unique asset base that is fully converged and fiber rich with strong number one or number two position in each market with nationwide fixed and mobile coverage. At the core of our strategy is the operational and financial turnaround in France and Portugal. In parallel, we have a clear plan to further strengthen our long-term balance sheet position as we execute our non-core asset disposals.
“Altice USA sees exciting opportunities in the U.S. market as we start 2018 with strong momentum. We have a full operational agenda to deliver best-in-class services to our customers, drive innovation and advance our fiber investment strategy. The new organization structure will enable us to focus even more on executing this agenda while enhancing transparency for our investors. We remain confident in achieving the objectives we set out at the beginning of our journey in the U.S. and affirm the efficiency targets set out at the time of the acquisitions of Suddenlink and Optimum.”