SFR continues to give in Pepitas. The telecommunications operator must receive the signatures of its last creditors tonight to complete the “giga destructive” of its 24.8 billion euros in debt. More than 90% have already approved the negotiated agreement in recent months with the owner, Patrick Drahi. The lenders agreed to erase 6 billion euros in exchange for 45% of the capital of SFR. Thanks to the 2.6 billion euros in cash of the sales of their data centers and the media (RMC, BFM TV and BFM Business), the debt will increase to 15.5 billion euros.
But it is not over. The CEO of Altice France, the parent company of the operator, undertakes to continue the disappointment. The debt will be reduced to 13 billion euros, such as Arthur Dreyfuss wrote in an internal email at the end of February. To achieve this goal, SFR is already preparing the sale of its fiber network. This infrastructure of seven million points of sale deployed in France is owned by 50% of Altice, the balance is shared between three financial investors, including French insurer Axa.
According to several sources close to the file, investment funds are interested in this fiber XP subsidiary and are currently working on it. These are KKR, Ardian and Gip. The Canadian CDPQ would also be in the ranks. No official process has been opened, but non -colorful offers are expected for this summer. 100% XP fiber will be directed, while minority shareholders are also vendors. Contacted, Altice did not want to comment.
Advanced discussions with KKR
“This transfer has always been part of the general negotiations around debt,” confirm several creditors.
Everyone knows that it is linked to this network, a symbol of their cable debut. “It is his Eiffel Tower,” one of his relatives smiles, who remembers that the strong investments in the fiber have passed and decrease, enough to inflate the future margins.
This operation is a “new version” because the XP fiber had already sold a year ago to test the market. In the fall, the owner of SFR privately evoked a high valuation of 5 to 6 billion euros when buyers pointed to 4 billion euros.
The American Fund is today one of the favorites when it has just bought the Telecom Italia fiber network for 18.8 billion euros last year. However, some wonder if KKR was not scalded by his setbacks in Italy after a drastic review of his financial objectives and an eviction of the owner of the network. Others enjoy seeing the invisible hand of Xavier Niel, the chief of Free and Grand Rival of Parick Drahi, who is director of the American Fund.
Ardian plays the French letter
The other weight candidate is the French Ardiano background. According to our information, prepare an offer for summer and will be associated with another investment fund.
During the first round around XP Fiber, he affirmed his French nationality against the American KKR and pointed out the sensitive contracts between SFR with the Ministry of the Armed Forces. It was at the time of the controversy over the sales of strategic activities of Atos to American funds. An argument that, in the current context, could find echo.
Source: BFM TV
