Altice NV Further Separates from Altice USA
Jan 11, 2018
By Danielle Randall-Saba / Connectivity Business Senior Reporter:
– Dutch telecoms operator plans to unload majority equity position in spun-out US-based counterpart
– Spinoff is intended to reduce debt and improve performance
Dutch telecoms operator Altice NV (AMS:ATC) plans to unload its majority equity position in its recently spun-out counterpart Altice USA (NYSE:ATUS) as part of a complete restructuring of its business amid investor concerns about its future growth. The board’s decision to further separate itself from the US operations comes after the company struggled with performance in key markets, such as France and Portugal, whilst carrying a near US$60bn in net debt obligations…
Jim Osman, CEO of a consulting firm called The Edge, believes investors should watch Altice for additional spin-off activity as a means to boost performance and reduce debt. In his opinion, Altice should consider the spin-off of its French mobile and broadband group SGR, as the segment has dragged down overall company performance due to its declining customer base and limited growth opportunities for the business.