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Vivendi sells SFR to Numericable for EUR 13.5 bln, 20% stake

2014-04-06 20:12:00| Telecompaper Headlines

(Telecompaper) Vivendi's board has unanimously chosen to sell French mobile and broadband operator SFR to cable company Numericable, rather than to Bouygues Telecom, for EUR 13.5 billion of cash and a 20 percent stake in the combined Numericable-SFR. Vivendi will receive another EUR 750 million if the new company meets profitability targets. The deal means that France will continue to have four MNOs, Orange, SFR, Bouygues and Free Mobile. By joining Numericable, SFR adds a large installed base of fixed line customers to its traditional mobile business. The board cited the synergies to be gained from combining the two networks, customer benefits based on fixed-mobile convergence, a lower risk of competition issues, and the best overall value from the sale, over EUR 17 billion in cash and shares.

Tags: eur sells stake sfr

Bouygues offers more cash, less equity in third bid for SFR

2014-04-04 11:35:00| Telecompaper Headlines

(Telecompaper) French conglomerate Bouygues submitted a revised offer to acquire SFR from Vivendi on 4 April, with a EUR 1.85 billion increase in the cash element to EUR 15 billion. Bouygues proposes to offer Vivendi a smaller, 10 percent stake in the merged entity, which is expected to be worth EUR 1 billion before synergies and EUR 2 billion including them. As declared previously, Bouygues is offering a EUR 500 million earn-out clause, which could bring the total value of SFR to EUR 16.5 billion before synergies. Bouygues also said it would invest EUR 850 million in Bouygues Telecom-SFR, in addition to the contribution of its equity interest. Under the terms of the offer, it will hold 51 percent of the merged company at closing, with 10 percent for Vivendi and 39 percent for industrial and financial partners. An IPO of the new entity would take place right after the merger's completion. Furthermore, Bouygues confirmed that the financing for the operation is fully secured and that the final, definitive loan documents have been signed.

Tags: offers third cash bid