The Altice group confirmed yesterday evening to have entered into “exclusive negotiations” with the Brazilian operator Oi with a view to the acquisition of Portugal Telecom. Patrick Drahi’s company has indicated that it plans to issue an offer based on a valuation of 7.4 billion euros in cash, of which 500 million euros will depend on the future revenues of the company.
Already present in Portugal
The tricolor firm was not alone in the running since two private equity funds, Apax Partners and Bain Capital, had also submitted an offer of 7.075 billion euros to Oi. But the French would have finally had the favors of Oi.
Altice is already present in Portugal. In 2013, he bought the B2B operator Oni Communications, a small local player, after having already acquired Cabovisão a year earlier, a small consumer operator providing television and Internet offers via cable, and VoIP telephony. The latter’s brand also uses the Numericable logo in France.
PT in the big leagues
With Portugal Telecom, Altice is now moving up a gear in the country. Last year, PT posted a turnover of 2.911 billion euros for a profit of 331 million euros.
The company also specifies that the transaction will be subject to acceptance by the regulatory authorities since it will have consequences on the structure of the telecoms market in the country. Altice therefore also had to make social promises to convince: the CEO had promised in a Portuguese daily that he would create 4,000 jobs if his offer was accepted.