France Telecom/Canal Plus sell cable networks

PARIS, Dec 21 (AFP) – France Telecom and Vivendi Universal unit Canal Plus said Tuesday they had signed a deal to sell their cable activities to a consortium grouping investment fund Cinven and cable operator Altice for EUR 528 million (USD 707 million).

In a joint statement, the companies said they would each retain a 20 percent stake in the combined cable operations, “representing an investment of approximately EUR 37 million for each company, corresponding to their interest in shareholders equity.”

Completion of the deal is expected in the second half of 2005. The ownership at that date is expected to be 50.01 percent for Cinven, 10.01 percent for Altice, and 19.99 percent for both France Telecom and Canal Plus.

The deal involved the sale of NC Numericable and France Telecom Cable, as well as the cable networks owned by France Telecom and Telediffusion de France (TDF), which is a former subsidiary of the French operator.

The companies said France Telecom would receive EUR 351 million from the sale while Canal Plus would get EUR 87 million and TDF EUR 90 million.

“This amount will be adjusted if applicable to take into account the number of networks for which ownership is actually transferred,” the companies said.

The agreement culminates exclusive negotiations since August between France Telecom and Canal Plus with Cinven and Altice.

The new entity represents about 4.2 million homes passed and approximately 1.7 active customers at November 30, providing coverage of 17 of France’s 20 largest cities.

© AFP

Subject: French News