The telecommunications leader, Altice, is looking for solutions to manage its large pile of debt, which totals around $60 billion. The founder of Altice, Drahi, is eyeing one of the company’s assets, its Portuguese operation Meo, as a potential path for debt reduction. In Portugal, Meo is the frontrunner with a dominant 48% share of the mobile market.
Interestingly, the Portuguese media outlet, O Jorno Económico, reported that this is just one of three non-binding offers, all of which allegedly fall below Drahi’s €7 billion valuation reported by Bloomberg, though details concerning the other companies weren’t disclosed.
As the company fellows under its colossal debt, Altice grapples with more trouble with regards to Armando Pereira. The arrest of Pereira, the co-founder and former COO of Altice, in July on charges of tax fraud, corruption, and money laundering, has added another layer of complexity. Publicly, Altice has confirmed its full cooperation with the investigation and has severed ties with all the individuals implicated in this scandal. This recent scandal is undoubtedly dampening the company’s prospects as it pursues the sale of its Portuguese operation.
However, in the midst of these challenges, the Saudi Arabian telecommunications corporation STC, recently completed the acquisition of a 9.9% stake in Telefónica for €2.1 billion. This investment has established STC group as Telefónica’s largest shareholder. STC has engaged in a series of investments within the tech and telecommunications sectors recently, including the acquisition of tower assets from the Netherlands-based United Group for €1.22 billion.
STC is not alone in the Middle Eastern market as a state-owned telecom champion investing in key European operators. UAE-based e& has been steadily growing its stake in Vodafone Group since 2022, recently announcing their plans to boost their business equity to 20%.
Lastly, Altice disclosed its plans to divest control of its data centre business. Through a potential deal with Morgan Stanley for €535 million, Altice hopes to offload a 70% share.
In conclusion, The telecommunications giant, Altice, is espousing various strategies in an effort to alleviate its considerable debt, including resorting to selling off certain assets and divisions. Observers will undoubtedly watch closely as these potential sales, and the wider story of Altice’s indebted position, continue to unfold.
