Telecommunications giant Altice, led by Franco-Israeli billionaire Patrick Drahi, is reportedly in the late stages of negotiations with Morgan Stanley (NYSE:MS) Infrastructure Partners to sell its data centers in France. The potential sale, which was reported by Les Echos on Wednesday, forms part of Drahi's strategic plan to raise capital and alleviate the financial strain on his company.
The valuation of these data centers is estimated at approximately €1 billion ($1.07 billion), according to an anonymous source cited by the French newspaper. An agreement in principle on the valuation level has been reached, Les Echos added. However, spokespersons for both Altice and Morgan Stanley have declined to comment on the matter.
Drahi has been under pressure recently following the arrest of a close associate on corruption allegations. In response, he has been striving to restore confidence among creditors regarding the financial stability of his expansive media-to-cable empire, which carries a combined debt load of $60 billion.
Last month, Drahi assured investors that assets would be sold within Altice France or outside of France to repay the company’s debt. With debt obligations spread across three separate entities, refinancing and extending maturities are becoming necessary, particularly in the context of rising interest rates.
The prospective sale of Altice’s data centers is viewed as a key move to unlock liquidity and reduce the group’s debt burden. This aligns with Drahi's commitment to bolster Altice's financial health in a rapidly evolving telecommunications landscape. The ongoing negotiations indicate the group's continued efforts to adapt to shifting market dynamics while ensuring its long-term sustainability.
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