Altice USA sells 49.99% stake in B2B unit Lightpath to Morgan Stanley; concludes New Jersey acquisition

29 Jul 2020

Altice USA has agreed to sell 49.99% of its Lightpath fibre-optic B2B business to Morgan Stanley Infrastructure Partners (MSIP) for an implied enterprise value of USD3.2 billion. Altice USA will receive total gross cash proceeds of approximately USD2.3 billion from the sale and related financing activity (net cash proceeds of approximately USD1.1 billion after tax and initial debt repayment). Altice USA will retain a 50.01% interest in Lightpath and maintain control of the company. The transaction is expected to close in Q4 2020, following customary regulatory approvals. Dexter Goei, CEO of Altice USA, commented: ‘Bringing in a strategic investor allows Altice USA to focus on operating our core businesses while infusing the capital needed to grow Lightpath and maximise shareholder value.’

In other news, Altice USA has confirmed that it closed its previously announced takeover of regional cable operator Service Electric Cable TV of New Jersey on 14 July. With this acquisition, Altice USA extends its footprint into neighbouring communities in New Jersey; the business is expected to be rebranded as Optimum in due course. The deal, which was inked in February this year, is valued at around USD150 million.

United States, Altice Business (Lightpath), Altice USA (incl. Optimum, Suddenlink)