Altice converts €2.5bn of Meo debt into equity

Altice International has carried out a €2.5 billion capital increase at Portuguese telecoms operator Meo by converting intragroup debt into equity, ECO has learned, in a move the company says is intended to strengthen the group’s liquidity and long-term financial stability.

The transaction was completed on May 8 and lifted Meo Portugal S.A.’s share capital from about €17 million to €2.535 billion, according to corporate filings. Asked by ECO about the operation, an official Meo source said the increase was part of the proactive measures announced by Altice International in late November 2025 and did not result from the booking of specific assets, but from the conversion of intragroup debt into capital.

Those measures included a decision by owner Patrick Drahi to remove key businesses, including the operations in Portugal and the Dominican Republic, from the pool of assets pledged as collateral for debt. Altice International also launched a strategic review of its asset portfolio to assess potential disposals over the coming years, saying at the time that the process was aimed at improving financial flexibility and supporting broader capital structure initiatives.

Altice also said in November that it had reserved €2 billion of additional debt capacity at Altice Portugal to support liquidity, the strategic review and any subsequent disposal processes. The group has been under pressure in recent years because of its debt burden, particularly after the rise in interest rates. According to its latest accounts cited by ECO, Altice International, which controls Altice Portugal, had net debt of just under €8 billion, with an average interest rate of 5.8%.

Originally published at Eco.pt