Altice to spinoff US business
Altice, a Netherlands-based telecoms firm that has the second largest market share in France, has announced its plans to separate its US and European operations into separate units.
The move has been taken in the attempt of reassuring the company’s investors, largely due to its high debt levels and low revenue generation.
Having been approved by the firm’s Board of Directors, Altice USA and Altice NV (to be renamed Altice Europe) will now work to split their operations, allowing each business to streamline and focus more on specific regional opportunities.
Following the separation, Patrick Drahi, Founder of Altice, will retain control of the two units, serving as President of the Board for both arms of the company.
“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,” Drahi said. “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.”
The Board also approved a $1.5bn dividend cash payment to shareholders prior to the completion of the separation, with the split expected to complete in the second quarter of 2018.
Further, Altice has also authorised a $2bn share repurchase program, set to be implemented following the spinoff of the firm’s 67.2% interest in Altice USA.