Bouygues Telecom revises SFR bid

13 Mar 2014

French mobile operator Bouygues Telecom has submitted a revised offer for Vivendi’s telecoms unit SFR. According to a company press release, Bouygues Telecom proposes to lift its initial offer by EUR1 billion (USD1.39 billion); under the terms set out by the updated bid, Bouygues Telecom is tabling a bid of EUR11.3 billion in cash (an increase of EUR800 million), as well as a 43% interest in the enlarged, newly established entity. The new offer values Bouygues’ larger rival SFR at EUR15.5 billion (pre-synergies) and at nearly EUR20 billion after taking in all synergies. Further, Bouygues pledges to facilitate an initial public offering (IPO) as soon as the merger is completed, giving an immediate opportunity for Vivendi to monetise its interest.

As previously reported by TeleGeography’s CommsUpdate, last week Vivendi received two bids for France’s second largest mobile provider in terms of subscribers, from domestic broadband operator Numericable, majority owned by Luxembourg-based investment fund Altice Group, and Bouygues; both suitors initially valued SFR at around EUR19 billion–EUR20 billion. Earlier this week, Vivendi asked all interested parties to submit their final offers before its board of directors meeting, scheduled for 14 March 2014; however, Patrick Drahi, CEO of Altice Group, reportedly said that he will not raise his bid for SFR. Numericable and its parent offered a bid which consists of EUR11 billion in cash (comprising EUR8 billion in debt and EUR3 million via a capital increase) and 32% of the newly merged entity.

France, SFR, Bouygues Telecom, Numericable-Completel, Vivendi, Altice Group,

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