Altice sold 49.99% of the fibre optic network, and Alexandre Fonseca, Altice Portugal CEO, guarantees that the company will continue to control this infrastructure.
Altice closed the agreement to sell fibre optic to Morgan Stanley Infrastructures Partners, a process that had been going on for months and with several competitors, but Alexandre Fonseca guarantees, in an email sent this Friday morning to workers, to which ECO had access, that “Altice Portugal does not give up control of the business of this infrastructure and its dominant position (over 50%)”.
Altice sold 49.99% of its fibre optic network in Portugal to Morgan StanleyPInfrastructure Partners, in a business that now values the network at 4.63 billion euros. With this transaction, which should be concluded in the first half of next year, Altice expects a cash inflow of 1,565 million euros in 2020. In addition to the 1,565 million in 2020, Altice will receive a further 375 million euros in December 2021 and another 375 million euros in December 2026, according to the statement.
In the email to the workers, the Executive Chairman of Altice explains this option. “Over the last few months, multiple operators have expressed interest in using our infrastructures in Portugal, a key and positive sign of the importance and attractiveness of the national market. The interest expressed in the optical fibre of Altice Portugal reflected the recognition of the Group’s strategy, the intrinsic value and prestige of the assets and investments that the company has made in the country”.
Alexandre Fonseca stresses that Altice will keep control of this infrastructure. “The country’s fibre optic infrastructure is one of our strategic axes for Portugal so we will maintain our position, on a continuous basis, of being the largest investors in Portugal and the goal of reaching the 5.3 million homes with fibre optics, which will make Portugal the first country in Europe with practically full fibre optic coverage”.
This is Altice’s biggest business in Portugal since it bought PT Company. “This is a milestone that shows the country’s potential, as well as Altice’s commitment and capacity to attract international investment, fundamental for our economic-financial and technological leadership and also for that of Portugal”.