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Debt-ridden Altice in talks to sell data centers to Morgan Stanley

Booth Altice

The cable and telecommunications giant Altice, led by French-Israeli billionaire Patrick Drahi, is said to be on the verge of finalizing a historic agreement to sell its activities. French datacenters to Morgan Stanley Infrastructure Partners. The expected value of the transaction for these assets, according to privileged sources quoted by the French daily Les Echos, amounts to nearly 1.07 billion dollars.

The passage through Altice appears to be part of a broader effort by Mr. Drahi to ease some of the financial pressures facing his vast cable media conglomerate. Currently, the conglomerate is believed to be carrying a significant debt burden, amounting to around $60 billion.

Mr. Drahi’s commitment to financial stability and operational agility in the telecommunications sector seems to underline this potential sale. Analysts believe such a sale is a thoughtful and tactical move designed to unlock cash and reduce the company’s daunting debt levels, signaling the group’s unwavering commitment to adaptability in an ever-changing market. evolution.

“Restore Trust”

Speculation about Patrick Drahi’s motives has intensified, particularly following the arrest of a close associate for corruption. Therefore, more emphasis has been placed on restoring confidence among the company’s lenders. Anxious to reiterate his commitment to ensuring the conglomerate’s financial solidity, Mr. Drahi underlined, during a recent conference call with investors, his intention to liquidate assets, whether within Altice France or international, to service the debt.

Adding to the complexity of the situation is that the large debt is split between three separate entities, and with the looming shadow of rising interest rates, there would be an imminent need for refinancing and extension of maturities.

Wednesday Echos report was instrumental in highlighting Drahi’s efforts to reinvigorate its cash flow, highlighting the impending deal between Altice and Morgan Stanley Infrastructure Partners. Despite reports circulating, representatives of the two Morgan Stanley and Altice remained tight-lipped, declining to comment on the speculated transaction.

As the global telecommunications industry witnesses rapid evolution and transformative change, AlticeThe potential sale of appears to epitomize the adaptive measures companies are taking to ensure resilience and long-term sustainability.

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