Altice Group has signed a definitive agreement to acquire 70% of the share capital in US cable operator Suddenlink from existing shareholders BC Partners, CPP Investment Board and Suddenlink’s management. Going forward, BC Partners and CPP Investment Board will retain a 30% stake in Suddenlink. The acquisition values the enterprise at USD9.1 billion, with the transaction to be financed via USD6.7 billion of new and existing debt, a USD500 million vendor loan note from the two aforementioned stakeholders and USD1.2 billion in cash from Altice; the remainder represents the ‘roll over’ value by BC and CPP. The transaction is expected to close in the fourth quarter of 2015, once the necessary regulatory approvals have been obtained.
According to TeleGeography’s GlobalComms Database, as at 31 December 2014 Suddenlink was the seventh largest cable broadband operator in the US, serving 1.213 million subscribers in Arkansas, Louisiana, North Carolina, Oklahoma, Texas and West Virginia.