Netherlands-based telco Altice Group has announced that funds advised by BC Partners and the Canada Pension Plan Investment Board (CPPIB) have entered into a definitive agreement to acquire 30% of the equity of New York-based cableco Cablevision Systems for approximately USD1.0 billion. This definitive agreement follows the 17 September announcement that Altice had agreed to pay USD17.8 billion for Cablevision, in a deal comprising USD14.5 billion of new and existing debt at Cablevision and USD3.3 billion of cash from Altice. The acquisition of Cablevision is expected to close in the first half of 2016, once applicable regulatory approvals have been obtained.
The European telco notes that the new shareholder’s agreement between Altice, BCP and CPPIB is on similar terms as the Suddenlink transaction that was announced in May 2015. That deal saw Altice agree to pay USD9.1 billion acquisition 70% of the cableco, with its existing shareholders BC Partners and CPPIB retaining a 30% stake.
Dexter Goei, CEO of Altice, commented: ‘We are extremely pleased that BC Partners and CPPIB – our future partners in Suddenlink – have also agreed to invest alongside us in Cablevision and to continue to accompany Altice in its long term oriented growth and investment strategy in the US’.