Altice SA will end. Here comes the Altice NV. Everything to gain power for more acquisitions
The owner of PT Portugal will transfer assets and integrate a merger this summer. Operations are carried out so that the businessman Patrick Drahi can maintain control and continue acquisitions that have played.
The Altice SA, based in Luxembourg, will end. Will transfer its assets to a newly incorporated Altice and Luxembourg SA will merge with Altice NV, recently established in the Netherlands. At the end of operations, which will be completed in the summer, the Altice SA ends. Is the new “holding” Dutch for greater scope for expansion to the company without the founder entrepreneur Patrick Drahi, lose control.
In this operation, the value of the company that owns PT Portugal, which owns Meo, which was taken into account is 32.5 billion euros. It is the market value (representing the value of the shares multiplied by number of shares). It is a capitalization corresponding to the sum of large national companies: EDP, Galp, Jeronimo Martins and EDP Renováveis. With debt included, the value of Altice arrives to 61.9 billion euros
The transactions in question
Starting with the merger: a. Altice SA the company is currently listed on the Amsterdam stock exchange, will merge with Altice NV The latter is the acquiring company. The Altice SA is the one that will cease to exist.
According to the official statement, the existing shareholders Altice SA will give their titles in exchange for two distinct categories of shares (A and B) with rights separate vote, the Altice NV “Both types will have the same economic rights and are listed on the Amsterdam Stock Exchange, Euronext”
Turning to the transfer of assets:. the assets and liabilities of Altice SA, before the merger, will leave its sphere to integrate a subsidiary, Altice Luxembourg SA
Both the transfer and the merger around the company that in addition to PT Portugal holds the French Numericable, require approval by a majority two-thirds of the votes (67%) at the extraordinary general meeting to be held the first week of July. At the outset, it will not be difficult to get approval: the company statement says shareholder with 64.6% stake in Altice has agreed irrevocably to vote in favor of the two operations. Drahi has at present 58% of the capital.
According to company information, these steps will be announced to the first two weeks of August.
The reasons
The new structure of the resulting Altice these operations will facilitate acquisitions that the company has announced want to do, especially because there are more actions that can be used for purchases. This is because there is, for companies, a chance to realize acquisitions by delivery of shares (which decreases the power of the controlling shareholder) rather than the payment of money. If you keep delivering action, the power of majority shareholders down. Hence, now there is a merger, so that the resulting company has more actions to deliver.
That is why it is said that the operations will allow Draghi maintain control of the company. That’s right was taken over by CEO of Altice, Dexter Goei:. The aim is that the “chairman” stick with at least 50.1% of the shares, according to Bloomberg quotes
“According the terms of the merger, the group will benefit from a powerful ability to purchase by delivery of shares without prejudice to the oversight of the votes of the founding shareholder group. The merger will also strengthen Altice’s position in the value of the next growth phase, “quotes same CEO in a statement.
The decision is made official in a week when a proposed acquisition by Altice did not go well. The management of the French mobile network operator Bouygues refused the offer, it was reported, would exceed 10 billion euros.
The shares of Altice follow gaining 0.99% to 132.45 euros on the Amsterdam stock exchange. They debuted at start 2014 with a price of 28.25 euros.
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