Altice To Acquire Cablevision For $17.7 Bln

(RTTNews) - European telecommunications group Altice S.A. (ATCV.OB) Thursday said it agreed to buy U.S. telecommunications and media company Cablevision Systems Corp. (CVC) for $34.90 per share in an all-cash deal valued about $17.7 billion, including debt.

The move is part of Altice's expansion in the US market following the agreed acquisition of 70 percent of the share capital in US-based cable operator Suddenlink in May. The current deal is expected to create the fourth largest cable operation in the US market.

The acquisition also includes Cablevision's business services unit Lightpath, 24-hour local television news network News 12 Networks, Newsday Media Group, and Cablevision Media Sales, its advertising sales division.

Following the closure of the deal, expected in the first half of 2016, Cablevision and Suddenlink will operate with independent capital structures, with the management being drawn upon from both companies. The combination is expected to create a leading communications services and technology group in the US market with 4.6 million customers in 20 states.

The offer price of $34.90 represents a 22.3 percent premium over Cablevision's closing price of $28.54 on Wednesday.

The deal is to be financed with $14.5 billion of new and existing debt at Cablevision, $3.3 billion of cash from Altice and cash on hand at Cablevision. Altice has received full financing commitments from JP Morgan, BNP Paribas and Barclays.

Holders of shares representing a majority of the outstanding of voting power of Cablevision have already delivered written consents approving the deal.

Cablevision generated $6.53 billion in revenues and $1.86 billion in adjusted free cash flow on a consolidated basis for the 12 months period ended June 30, 2015.

"This acquisition, our second in the cable sector in the US, is the next step in Altice's long-term oriented strategy in the US, one of the largest and fastest growing communications markets in the world," Altice CEO Dexter Goei stated.

CVC closed Wednesday regular trading session at $28.54, up $0.08 on a volume of 2.84 million shares. The stock gained a further $4.58 or 16.05% in after-hours trading.

Altice is currently trading in Amsterdam at 27.00 euros, up 2.67 euros or 11.01% on a volume of 0.28 million shares.