Altice Europe unveils TowerCo agreements

Telecom, cable and media giant Altice Europe’s French and Portuguese untis have agreed the sale of their transmission tower businesses for a total cash consideration of €2.5 billion to create what Altice says will become one of Europe’s largest tower businesses.

Altice France has entered into an exclusivity agreement, and PT Portugal has reached an agreement, regarding the sale of equity stakes in their telecommunication tower businesses in France and Portugal.

Altice Europe said that the two transactions once realized would generate significant proceeds and underscore its commitment to deleveraging and balance sheet management. It said that the transactions will also strengthen both Altice France and PT Portugal to pursue their long-term industrial projects

Altice France has entered into an exclusivity agreement with KKR for the sale of 49.99% of the equity in the to-be-formed tower company – SFR TowerCo – that will comprise 10,198 sites currently operated by SFR. The envisaged transaction values SFR TowerCo at an enterprise value of €3.6 billion.

A 20-year master agreement envisaged between SFR as a tenant and SFR TowerCo will set a partnership framework between the two companies. Altice France will fully consolidate SFR TowerCo.

PT Portugal has meanwhile reached an agreement with a consortium including Morgan Stanley Infrastructure Partners and Horizon Equity Partners for the sale of 75% in the to be formed tower company – Towers of Portugal or ToP ­– that will comprise 2,961 sites currently operated by Altice Portugal. The transaction values Towers of Portugal at an enterprise value of €660 million

An agreement for 400 new sites between Altice Portugal/Meo and ToP is expected to generate approximately €60 million in additional proceeds to Meo within the next four years. PT Portugal will reinvest to hold a 25% financial stake alongside the consortium.

“I am enthusiastic about creating new tower partnerships in

France and Portugal. With KKR, Morgan Stanley Infrastructure Partners and Horizon Equity Partners, we have found long-term partners of the highest-quality who share our vision to invest in leading infrastructure and growth opportunities,” said Altice founder Patrick Drahi.

“We will create a leading European tower business, including the number one in France. Both tower businesses will be uniquely positioned to grow as they provide increasingly important infrastructure services to operators in both markets. Simultaneously, these transactions underline our commitment to delever and proactively manage our balance sheet while highlighting the significant underlying value of Altice Europe’s business.”