The deal, which still needs to be approved, sets an enterprise value of €1.55 billion
Altice Group has entered into an exclusive deal to sell Altice Media to the shipping group CMA CGM for cash payment. Altice Media owns the popular French 24-hour news channel BFM and radio broadcaster RMC.
CMA CGM is owned and led by Rodolphe Saadé. It will acquire an 80% stake in Altice Media, with its holding company, Merit France, buying the outstanding 20%.
The proposed deal has come as something of a surprise regarding both parties. Patrick Drahi, co-founder and CEO of Altice Group had not formerly mentioned the sale of Altice Media in his asset-divesting drive to pay off some of the group’s €60 billion debt.
For his part, Saadé’s deal set an enterprise value of €1.55 million for the media assets which is 14 times its core profit and seems a high price. Saadé explained, “Altice Media is a reference media group, with strong growth, talented teams, and iconic brands”.
He added, “Altice Media’s complementarity with CMA CGM’s existing Media Division and its renowned medias, La Provence, Corse Matin, La Tribune et La Tribune Dimanche, will be a key strength.”
Regulatory hurdles
The deal cannot proceed without negotiations with employee representatives and regulatory bodies. Even so, Altice says it expects to complete the deal this summer.
Last week it emerged that the European Commission had fined Altice a total of €124.5 million several years ago for acquiring Portugal Telecom before gaining the necessary processes and approvals. Altice coughed up towards the end of last year.
The fines have nothing to do with Altice Portugal’s more recent financial scandal which does not seem to have put off prospective acquirers. The Portuguese operator has reportedly has drawn considerable interest and it is thought that Saudi Arabia’s stc is leading the pack after a funding consortium backed by the Portuguese banker António Horta-Osório pulled out. However, stc is keen to find Portuguese partners to improve its chances of emerging victorious.
French law enforcement is also investigating potential links to the Portuguese scandal and possible corruption, while stressing no-one in public office is under suspicion.