Altice UK - comment

Altice UK, the related entity to Altice France and Altice International, has increased its stake in BT Group from 18% to 24.5%. Altice UK has restated its position to the board of BT that it does not intend to make an offer for BT. Drahi’s investment vehicle first bought a 12% stake in BT in June 2021, increasing it to 18% later that year. The purchase of the additional 6.5% c. £1bn, was probably funded with the recent dividend/loan from Altice International of €490m (£430m). The balance was likely funded with leverage, with a dividend yield currently c.5%.

Altice France are due to report their Q1 numbers today. We don’t expect Altice France to have paid a dividend upwards, given the leverage/operational data worse at Altice France than Altice International.