Altice Europe strikes a $1.7B deal for first nationwide fiber wholesale business in Portugal

fiber
Altice Europe spawns first nationwide fiber wholesaler in Portugual via $1.7 billion deal with Morgan Stanley Infrastructure Partners. (Pixabay)

Alice Europe's Portuguese subsidiary MEO has inked a deal with Morgan Stanley Infrastructure Partners to build what it says will be the first nationwide fiber wholesaler in Portugal. As part of the deal, MEO will sell off a minority equity stake of 49.99% in Altice Portugal's fiber-to-the-home (FTTH) assets for an initial price of $1.74 billion.

It's the first step in the creation of a nationwide fiber wholesale entity in Europe, and will boost the Portuguese telecom market. The deal also helps Altice Europe pay down some of its debt.

Altice Portugal is the largest FTTH wholesaler in the country, with plans of reaching approximately 4 million homes passed by the end of this year. Altice Portugal said it would sell wholesale services to all operators at the same financial terms while MEO will sell technical services to Altice Portugal for FTTH construction, subscribers connection and maintenance of the network.

FREE DAILY NEWSLETTER

Like this story? Subscribe to FierceTelecom!

The Telecom industry is an ever-changing world where big ideas come along daily. Our subscribers rely on FierceTelecom as their must-read source for the latest news, analysis and data on the intersection of telecom and media. Sign up today to get telecom news and updates delivered to your inbox and read on the go.

RELATED: CenturyLink CEO: Fiber wins over 5G, wireless and hybrid fiber coax

Altice said it was the first time in Europe that an incumbent telecom operator has separated its own fiber into its own dedicated wholesale business.

“I am very pleased that our partnership with Morgan Stanley Infrastructure Partners, initiated in the context of our Portuguese tower transaction in 2018, now continues with a transformational fiber project," said “I am very pleased that our partnership with Morgan Stanley Infrastructure Partners, initiated in the context of our Portuguese tower transaction in 2018, now continues with a transformational fiber project,” said Altice Group CEO Patrick Drahi, in a statement. "Following this transaction, Altice Europe has obtained cash proceeds in excess of €5.7 billion through the transformational SFR FTTH transaction and the various tower sales and partnerships announced in 2018. Altice’s portfolio of infrastructure assets continues to grow.

"On a 100% proforma basis, SFR FTTH and our towers in France in addition to our fiber and towers in Portugal, already represent more than €0.8 billion of revenues and more than €0.5 billion of EBITDA, effectively constituting one of the largest telecom infrastructure groups in Europe."

Drahi also said that the transaction would "accelerate the deleveraging of the Group towards its stated leverage target," and "open the way to significant refinancing transactions in 2020." The cash deal is expected to close in the first half of next year.

Suggested Articles

Small and medium-sized businesses have borne the brunt of the Covid-19 crisis, but they're more prepared for a second wave, according to a report.

On Monday, AT&T acknowledged for the first time that DriveNets is indeed providing core-networking routing software for its next-gen core network.

Microsoft is taking direct aim at telcos by announcing Azure for Operators, which includes a carrier-grade cloud platform and edge compute capabilitie