SFR FTTH agrees to acquire 100% of Covage

25 Nov 2019

Altice Europe has announced that SFR FTTH, alongside its consortium of financial investors led by OMERS Infrastructure and including Allianz Capital Partners and AXA Investment Managers – Real Assets, has entered into an exclusivity agreement with Cube Infrastructure Fund and Partners Group regarding the acquisition of 100% of Covage for a total cash consideration of EUR1.0 billion (USD1.1 billion). The transaction is expected to close in H1 2020. The acquisition will be financed via a new EUR70 million non-recourse debt raised at Opco level, EUR465 million cash equity to be contributed by Altice and EUR465 million cash equity to be contributed by SFR FTTH’s financial investors (OMERS Infrastructure, Allianz Capital Partners and AXA Investment Managers – Real Assets).

Covage is a fibre wholesale operator in France with 2.4 million homes to be passed (including 800,000 homes already built) which will be added to SFR FTTH’s footprint of more than 5.4 million secured homes to be passed (including 1.7 million homes built). Covage will become part of SFR FTTH, resulting in a total of around eight million secured homes to be passed (including 2.5 million homes already built).

Patrick Drahi, founder of Altice, said: ‘I am very pleased that we are further expanding the leading FTTH wholesaler in Europe. We are extremely proud to integrate Covage, a great company, with a portfolio of areas in France complementary to ours. With this transaction we also bring onboard excellent local relationships. We continue to be focused on deleveraging Altice Europe notably thanks to growing revenues and EBITDA which will be supplemented with disposal proceeds. As I have explained previously, we are in advanced discussions with several parties in relation to our Portuguese fibre asset. This process is supported by the significant appetite for fibre in Europe: clearly demonstrated by the present transaction which has been strongly supported by our financial partners in SFR FTTH.’

France, Altice Europe (formerly Altice Group), Altice France (SFR), Covage