Altice Europe sold 49.99% of its fibre optic network in Portugal to Morgan Stanley Infrastructure Partners. The company expects a cash inflow of 1,565 million euros in 2020.
Altice Europe sold to Morgan Stanley Infrastructure Partners almost half of its fibre optic network in Portugal, in a business that now estimates 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.
Altice was already in talks with potential buyers to sell this position in the fibre optic network for several months, but the future owner of this stake is chosen. With this transaction agreed with Morgan Stanley Infrastructure Partners, Altice will receive, in addition to the 1,565 million in 2020, another 375 million euros in December 2021 and another 375 million in December 2026, according to the statement.
Altice Portugal FTTH, a company created with the signature of this agreement, will sell services to telecommunications operators in Portugal “with the same financial conditions”, says the document. In turn, Meo “will sell technical services to Altice Portugal FTTH for the construction, connection and maintenance of the fibre network”.
“I am very pleased that our partnership with Morgan Stanley Infrastructure Partners – initiated in the context of our 2018 Portuguese tower transaction – now continues with a transformational fibre project”, says Patrick Drahi, founder of Altice, quoted in a statement.
“This fantastic transaction with our long-standing partners at Morgan Stanley Infrastructure Partners will accelerate the group’s deleveraging,” he continues, noting that this deal will “pave the way for significant refinancing operations in 2020, which will allow us to accelerate the debt interest reduction program.