Reports suggest that European private equity firm Ardian is contemplating a bid for a dominant share in XpFibre, aligning with KKR & Co. and Global Infrastructure Partners in their pursuit of the company.
According to sources, the valuation of XpFibre, owned by Altice France, could range from EUR 6 billion to EUR 7 billion, including debt, following a successful deal.
Based on a previous investor presentation, XpFibre had about EUR 2.5 billion of net debt in 2023. The anticipated deal could value XpFibre, which is owned by Altice France, at around EUR 6 billion to EUR 7 billion, including debt.
XpFibre Ownership
At present, Altice France holds a 50.01% stake in XpFibre, with the remaining share owned by a consortium primarily led by OMERS Infrastructure. This consortium also comprises Allianz Capital Partners and AXA IM Real Assets.
As per statements made at the time, the OMERS consortium purchased its 49.99% share for EUR 1.7 billion in 2019, thus valuing the unit at EUR 3.4 billion.
Bidding Process
Deliberations are ongoing for the bidding but there’s no certainty that these will result in a deal.
Insiders have indicated that KKR is leading the bidding process, having commenced due diligence on the company earlier this year, positioning them as the most progressed bidder.
Altice France told creditors that they would need to participate in “discounted transactions” in order for the company to lower its debt load to four times a measure of earnings.
The debt of the overall group — including Altice France, Altice International and the listed Altice USA — stands at around USD 60 billion.
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