Altice Enters U.S. Cable Market with Stake in Suddenlink

May 20, 2015 World Screen
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LUXEMBOURG: Altice is set to acquire a 70 percent stake in the U.S. cable operator Suddenlink, in a deal that values the company at $9.1 billion.

The multinational cable and telecommunications company is purchasing the majority stake in Suddenlink from existing shareholders BC Partners, CPP Investment Board and Suddenlink management. BC Partners and CPP Investment Board will retain a 30 percent stake. The transaction is to be financed with $6.7 billion of new and existing debt at Suddenlink, a $500 million vendor loan note from BC Partners and CPP Investment Board and $1.2 billion of cash from Altice, with the remainder representing the rollover by BC Partners and CPP Investment Board.

Altice is already present in Western Europe (comprising France, Belgium, Luxembourg, Portugal and Switzerland), Israel and the overseas territories (currently comprising the French Caribbean and the Indian Ocean regions and the Dominican Republic). This Suddenlink deal allows it to enter the U.S. cable market.

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Dexter Goei, the CEO of Altice, said: "We are very excited about the acquisition of Suddenlink and are highly committed to continue to improve network investment, customer offers and service innovation in the attractive U.S. market.

"Our investment in Suddenlink, our first in the cable sector in the U.S., opens an attractive industrial and strategic avenue for Altice in the U.S., one of the largest and fastest growing communications markets in the world.

"We are looking forward to our partnership with BC Partners and CPP Investment Board and believe Suddenlink is a best-in-class business that should be able to deliver profitability and cash flow levels in line with best-in-class European cable businesses."