Altice USA, the US-based holding company owned by Netherlands-based Altice Group, has provided additional details regarding its previously announced initial public offering (IPO), and will now list a total of 63.943 million Class A shares on the New York Stock Exchange (NYSE) under the ‘ATUS’ ticker symbol from 22 June. 12.069 million shares belong to Altice USA, 31.476 million shares are owned by funds advised by BC Partners, and 20.398 million shares will be sold by entities affiliated with the Canada Pension Plan Investment Board (CPPIB). Further, BC Partners and CPPIB have granted the underwriters a 30-day option to purchase up to 7.781 million additional shares of Class A common stock. After completion of the IPO – which could raise up to USD1.9 billion – Altice Group will own 70.3% of Altice USA’s issued and outstanding common stock, which will represent 98.3% of the voting power of Altice USA’s outstanding common stock.
The IPO is widely expected to pave the way for another surge of US M&A activity by Altice, which previously acquired Suddenlink (December 2015) and Cablevision (June 2016). The group has named Cox Communications as a desirable takeover target, although the Atlanta-based firm has sought to quash such speculation. Further down the cableco pecking order, potential acquisition targets include the likes of Mediacom, Cable ONE, Atlantic Broadband and Midco.
Since Altice first stated its intentions to stage an IPO, private equity firm TPG Capital has taken a proactive stance towards M&A, snapping up three mid-sized operators, namely: Wave Broadband (USD2.4 billion), RCN (USD1.6 billion) and Grande Communications Networks (USD650 million). It remains to be seen whether TPG will seek a buyer for its consolidated cable assets, however. Elsewhere, regional player Wide Open West (WOW!), which recently staged its own underwhelming IPO, could yet emerge as an additional takeover target.