Altice, the cable and telecommunications group led by French-Israeli billionaire Patrick Drahi, is reportedly in the final stages of negotiations to sell its data centers in France to Morgan Stanley Infrastructure Partners, according to a report by Les Echos on Wednesday. The move is part of Drahi’s efforts to raise cash and alleviate financial pressures.
Les Echos reported that an “agreement in principle on the level of valuation has been reached,” citing an anonymous source. The valuation of these data centers is estimated to be around 1 billion euros ($1.07 billion), the French newspaper added.
Patrick Drahi has been under scrutiny after one of his close associates was arrested on corruption allegations. In response, Drahi has been working to restore confidence among creditors regarding the financial stability of his extensive media-to-cable empire, which carries a combined debt load of $60 billion.
Last month, Drahi assured investors during a call that assets, including the sale of assets within Altice France or outside of France, would be utilized 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 potential sale of Altice’s data centers is seen as a strategic move to unlock liquidity and reduce the group’s debt burden, aligning with Drahi’s commitment to shore up Altice’s financial health in a rapidly evolving telecommunications landscape. The ongoing negotiations signify the group’s continued efforts to adapt to changing market dynamics while ensuring its long-term sustainability.