(Bloomberg) – Broadband provider company Altice USA Inc. agreed to sell half of its lightpath fiber business to Morgan Stanley Infrastructure Partners for about $ 2.3 billion.
Altice expects the deal to receive approximately $ 1.1 billion in net cash after taxes and debt repayments, valuing the $ 3.2 billion operation. The company said in a statement on Tuesday, Altis will retain control of the business with a 50.01% stake.
The transaction means helping Altice focus on its core business while bringing new capital to Lightpath, which sells fiber-optic services to companies in the New York City area. More than 11,400 buildings are connected to Lightpath’s fiber network.
Altis shares gained 2% in late trading after the deal was announced. This year they were down 11%.
Altice, which split from Patrick Drohi’s Altice NV in 2018, discussed Bloomberg selling the Lightpath stake to Stonepeck Infrastructure Partners last year.
The Morgan Stanley transaction is expected to close in the fourth quarter. Goldman Sachs Group Inc. acted as financial advisor to Altis, while Shearman & Sterling LLP, Mayer Brown LLP and Ropes & Gray LLP offered legal counsel. Evercore was the financial advisor for Morgan Stanley Infrastructure Partners, with Simpson Thatcher and Bartlett LLP providing legal support.
For more such articles, please visit bloomberg.com
© 2020 Bloomberg LP
Video: Tiktok faces well-funded rivals, regulatory scrutiny in US (Fox Business)