Patrick Drahi, president of Altice, is reportedly considering selling SFR for good this time. Several interested parties are already lining up to sell, including rival French operators who would like to return to a three-party system.
It's been talked about for years. Since Numericable bought SFR in 2014, the operator has been up to its neck in debt and is reportedly considering selling. In the meantime, Altice, the parent company, is trying every means possible to reduce its debts, with varying degrees of success. One of the strategies adopted is the resale of certain parts of the entity. We're thinking of RMC and BFMTV, sold to Rodolphe Saadé in 2024, or the ultimately canceled sale of Meo, the number 1 operator in Portugal, to Free. And this time, it's SFR that's in the balance.
There have already been attempts. Bouygues Telecom tried to position itself in 2018, but the offer didn't succeed. No matter, almost everyone is back on deck. Laurent Martinez, CFO of Orange, kicked things off in early March by telling analysts: "For the first time in fifteen years in French telecoms, we have a seller." He doesn't name him, but everyone understands that it's Patrick Drahi, president of Altice.
Patrick Drahi no longer wants to hear about telecoms in France, SFR could disappear
Logically, we turn first to the 3 local competitors. Free doesn't hide, for example: "If consolidation in France allows us to grow, to distribute our Free model to a greater number of people, we will be very pragmatic," says Thomas Reynaud, CEO of Iliad. Even if there is nothing official, the acquisition must be considered now, as the procedures are so long. It is estimated that if they started tomorrow, they would not be completed before 2027 at the earliest.
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In any case, there is no question of a single operator completely swallowing up SFR, the number 2 telecoms company in France. Competition authorities, whether French or European, would not allow it. It would therefore be necessary to consider a fair split between the main buyer and the other two. According to analysts, Bouygues is best placed for this given the agreement to share its mobile networks with those of SFR since 2014.
What if SFR were sold to another country? Some are interested
This is the other avenue being considered. Technically, nothing obliges Patrick Drahi to sell SFR to a French entity. Several foreign players are looking to establish themselves in Europe, or to expand activities already underway on the Old Continent. These include Saudi Arabia with the operator STC and the United Arab Emirates with Etisalat. Both know the billionaire well, which could facilitate the opening of negotiations.
However, is the scenario plausible? Observers' opinions are very polarized. For some, "It's a bluff. You only have to see the rejection of STC's acquisition of a stake in Telefonica in Spain to understand that it will never happen." Others point out that France signed a €50 billion investment agreement with the Emirati fund MGX for the creation of AI infrastructure in France. The government is therefore not closed to transactions with these countries.
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The question of price remains, which will also influence the final decision. Assuming he does put the operator up for sale, Patrick Drahi doesn't intend to sell SFR off. Valued at €20 billion, he could seek to get €25 billion according to experts.
Selling to Bouygues, Orange, or Free might make it possible to reach this threshold, but with the prospect of engaging in lengthy and potentially blocking procedures. Selling abroad would avoid these, which would reduce delays, but probably at a lower price. Whichever choice is made, we will have to wait a few years before seeing how the disappearance of SFR as we know it will impact its customers.
Source: Le Figaro
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