With more than 7 million FTTH (fiber-to-the-home) connections under management, XpFibre is a player unlike any other. It's the backbone of connectivity for millions of homes, but the head of Altice wants to turn the page on telecoms in France. Earlier this year, the website BFM Business reported that SFR was preparing to sell its fiber network, presented as one of the group's "jewels." According to La Lettre de l’Expansion, Altice has just put up for sale 50.01% of the capital of its subsidiary specializing in optical fiber. Suffice to say, its sale has not gone unnoticed.
8 billion euros on the table
Deep in debt (more than 15 billion euros), Altice hopes to get a welcome breath of fresh air from this sale. The valuation? Around 8 billion euros, including debt. A figure that is turning heads and attracting the world's largest investment funds: the American KKR (already well-known in the telecoms sector), the French Ardian, and GIP (Global Infrastructures Partners), now owned by the giant BlackRock. Not to mention the current minority shareholders (OMERS, Allianz, Axa IM), who are keeping a close eye on things.
Note that a certain Xavier Niel, founder of Free, sits as an independent director on the board of directors of the American investment fund KKR,
Behind this sale, the entire future of SFR is at stake. XpFibre is the network, the technical backbone of the operator. For Altice, selling XpFibre means preparing the ground for an even more spectacular sale: that of SFR itself, whose valuation could exceed €24 billion. But before selling the house, you first have to sell the foundations.
Should SFR customers be worried?
For the millions of SFR subscribers, as we explained a few days ago, there's no need to panic in the short term. The contract between the operator and XpFibre is solid, and continuity of service is guaranteed. However, the situation may change in the medium term depending on the profile of the new buyer. A manufacturer could play the stability card, while an investment fund could prioritize profitability, with consequences that are still difficult to anticipate.
Who will get their hands on this treasure of French networks? The answer, in a few weeks, promises to permanently shake up the French telecoms landscape. Firm offers are expected by the end of July, and the future buyer will have to deal with minority shareholders (Allianz, Axa, and Omers), who hold 49.99% of the capital. More than just a financial transaction, the sale of XpFibre is already shaping up to be a key episode in the SFR saga.
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