Altice International - comment

Altice UK have agreed to sell their 24.5% BT stake to Bharti Enterprises, initially selling 9.99% immediately and subsequently the balance, once regulatory approval is received.  The overall stake is worth c.£3.2bn but the actual equity valuation to Altice UK is subject to significant speculation due to margin loans used to finance the stake.  

Altice International should see the repayment of their intercompany loan of c.€600m from Altice UK which is secured on part of the BT stake.  The timing of this is currently unknown, but with the Teads proceeds expected in Q1 2025,  we don’t expect any movement in the capital structure in FY24.  

The fear continues in the market that Altice International provides support to Altice SFR France either in the form of intercompany loans and/or dividends via Altice Luxembourg but this sale and the sale of Teads should be seen as positive for Altice International creditors.