In the telecom landscapes of Portugal, a notable development has transpired concerning Altice Portugal, operating under the brand name Meo. Owned by French billionaire Patrick Drahi, Altice Portugal has been on the sales block since last summer, signaling the intent of its parent company, Altice Group, to reduce its existing debt burden.
Numerous interested buyers have come to the fore. Among the forerunners in the bidding race is the Saudi Telecom Company (STC), although certain other potentially high-profile bidders have requested anonymity. Business newspaper Jornal Económico reported that Altice has received three non-binding offers. The intrigue surrounding these offers adds suspense to the direction the bidding course will take. Notwithstanding, nothing stands finalized at present, since talks are in progress.
Primarily, what makes Meo a coveted asset is its leading position in the Portuguese telecom industry. With a 48% stake in the mobile segment and a 41% hold in the fixed broadband sector, it has a substantial stronghold in the market. The current bids, according to sources, are estimated to be ranging between €7 billion to €9.5 billion, although no official valuation or figures have been released.
The idea behind Drahi’s move to divest Meo aligns with Altice Group’s broader strategic goal to pare its heavy debt, standing at around $60 billion. Previously, Altice announced its decision to relinquish the control of its data centre business and entered a pact with Morgan Stanley to sell a 70% share for €535 million, thereby launching a new entity, UltraEdge.
However, the group’s journey to financial solvency hasn’t been smooth, with recent controversies adding to the challenges. Altice’s co-founder and COO, Armando Pereira, was embroiled in a scandal, facing accusations of tax fraud, corruption, and money laundering and his arrest in July.
Pending regulatory approvals, the transaction with Morgan Stanley is set to be sealed in the first half of the coming year.
