Altice Europe to go private after Drahi makes buy-out offer

Patrick Drahi has announced an offer to take Altice Europe private. His takeover bid values the outstanding minority shares at EUR 2.5 billion and would see the company de-listed from the Amsterdam stock market. 

Drahi's holding company Next Alt already controls 77.6 percent of the company's shares. The offer for the outstanding class A and B shares is worth EUR 4.11 per share, a 23.8 percent premium on the closing price the day before the bid was announced and a 16.5 percent premium on the 180-day average weighted price. 

After an evaluation of the bid led by its independent directors, Altice Europe's board has given its backing to the offer and recommended the bid to shareholders. Investment bank Lazard also issued a fairness opinion on the bid.

Altice said the de-listing would save on costs, help it focus more on long-term strategy, avoid the negative fluctuations in its share price and the impact on its ability to raise debt, and overall improve capital efficiency. 

Drahi has secured a term loan credit agreement to finance the offer. This is fully committed on a "certain funds" basis by BNP Paribas. The company and shareholder also agreed to certain non-financial covenants for at least 12 months after the takeover, such as maintaining two independent directors, no major changes to strategy or assets, and respecting employee rights. 

The deal remains subject to approval from an extraordinary shareholders meeting and other conditions. It's expected to close in Q1 2021.