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Debt-laden Altice in talks to sell data centres to Morgan Stanley - Les Echos

Published 09/06/2023, 01:07 PM
Updated 09/06/2023, 01:12 PM
© Reuters. FILE PHOTO: Patrick Drahi, Franco-Israeli businessman and founder of cable and mobile telecoms company Altice Group attends the inauguration of the Altice Campus in Paris, France, October 9, 2018.  REUTERS/Philippe Wojazer/File Photo
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PARIS (Reuters) - Cable and telecoms group Altice is nearing a deal to sell its data centres in France to Morgan Stanley Infrastructure Partners, Les Echos reported on Wednesday, as the group of French-Israeli billionaire Patrick Drahi rushes to free up cash.

"An agreement in principle on the level of valuation has been reached", Les Echos said in a report, citing one anonymous source. The data centres could be valued at around 1 billion euros ($1.07 billion), the French newspaper added.

Spokespersons for Altice and Morgan Stanley declined to comment.

Drahi, under pressure after his right-hand man was arrested over allegations of corruption, is striving to boost creditors' confidence in the financial reliability of his sprawling media-to-cable empire, whose combined debts total $60 billion.

Last month, Drahi promised to investors on a call that assets will be sold within Altice France or outside France to repay debt.

© Reuters. FILE PHOTO: Patrick Drahi, Franco-Israeli businessman and founder of cable and mobile telecoms company Altice Group attends the inauguration of the Altice Campus in Paris, France, October 9, 2018.  REUTERS/Philippe Wojazer/File Photo

Spread across three separate entities, parts of the debt will soon have to be refinanced and maturities extended in the context of rising interest rates.

($1 = 0.9333 euros)

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