Netherlands-based multi-country telecoms group Altice NV (also known as Altice Group) has announced that its board of directors has approved plans for the separation of Altice USA from Altice NV – which will be renamed ‘Altice Europe’. In the spirit of enhanced accountability and transparency, Altice Europe will reorganise its structure to comprise ‘Altice France’ (including the French Overseas Territories), ‘Altice International’ and a newly formed ‘Altice Pay TV’ subsidiary. Altice aims to complete the proposed transaction by the end of the second quarter of 2018, following regulatory and shareholder approvals.
In order to facilitate the spin-off, Altice NV’s 67.2% interest in Altice USA will be distributed to Altice NV shareholders. Following the proposed transaction, the two companies will be led by separate management teams. Patrick Drahi, founder of Altice, will retain control of both companies through his Next holding company, and is committed to long-term ownership. Post-separation, Mr Drahi will serve as President of the Board of Altice Europe and Chairman of the Board of Altice USA.
As per the company’s press statement: ‘The separation will enable each business to focus more on the distinct opportunities for value creation in their respective markets and ensure greater transparency for investors.’