3 de noviembre de 2014 / 0:47 / en 3 años

UPDATE 1-Altice says offers to buy Portugal Telecom assets from Oi

(Adds background, details)

Nov 2 (Reuters) - Altice SA said it made a fully financed offer to buy the Portuguese assets of Portugal Telecom from Oi SA.

“These assets comprise the existing business of Portugal Telecom outside of Africa and excludes Portugal Telecom’s Rio Forte debt securities, Oi treasury shares and Portugal Telecom financing vehicles,” Altice said.

It said the offer values the assets at an enterprise value of 7.025 billion euros ($8.78 billion) on a cash and debt-free basis, which includes a 400 million euros earn-out related to the future revenue generation of Portugal Telecom and a 400 million euros earn-out related to the future generation of operating free cash flow (EBITDA less Capex).

The transaction net of financial debt and other purchase price adjustments would be financed by new debt and existing cash from Altice, Altice said.

The sale would mark the effective unwinding of Oi’s purchase of Portugal Telecom, unveiled in December 2013, that was supposed to create a stronger company with a strengthened balance sheet.

Instead, the merger has been rocked by fallout from a banking scandal in Portugal that weakened Portugal Telecom, leaving the combined company deep in debt and struggling in a consolidating Brazilian market.

Altice has been looking for acquisitions to increase its presence in Europe. In April, Altice-controlled French cable firm Numericable Group SA agreed to buy France’s second largest mobile operator SFR from Vivendi SA.

Drahi said at an investor conference in September that his group’s strategy was to look at acquisition targets in countries where it was already present, such as Portugal and Belgium.

($1 = 0.80 euro)

Reporting by Ankush Sharma in Bangalore; Editing by Cynthia Osterman and Eric Walsh

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