France: Canal+, France Telecom in Partial Sale of Cable TV Interests
Posted on: Tuesday, 21 December 2004, 12:00 CST
Text of press release by the French Canal+ organization on 21 December
Paris, 21 December 2004: Canal+ Group, France Telecom and TDF announce the signature of an agreement with a consortium comprising private equity firm Cinven and cable operator Altice for the sale of NC Numericable and France Telecom Cable, as well as the cable networks owned by France Telecom and TDF, for a total consideration of 528m euros. Total proceeds from the sale are 351m euros for France Telecom, 87m euros for Canal+ Group and 90m euros for TDF. This amount will be adjusted if applicable to take into account the number of networks for which ownership is actually transferred.
Canal+ Group and France Telecom will each retain approximately 20 per cent in the newly formed entity, representing an investment of approximately 37m euros for each company, corresponding to their interest in shareholders equity.
The signature of this agreement culminates exclusive negotiations since August 2004 between Canal+ Group and France Telecom with Cinven and Altice. Seeking to play an active role in the progressive consolidation of the cable industry, the two groups signed a Memorandum of Understanding on 18 March 2004, allowing them to combine their cable activities to enable the acquisition of a controlling interest in the resulting entity by new shareholders.
The new entity represents approximately 4.2 million homes passed and approximately 1.7 million active customers at 30 November 2004, providing coverage of 17 of France's 20 largest cities.
Through this agreement, Canal+ Group aims to encourage the emergence of a major player in the cable industry and pursue its strategy of making its channels available on all distribution platforms.
The agreement reflects France Telecom's progressive withdrawal from the cable business while enabling the creation of an integrated cable company that both owns the infrastructure and operates cable services, taking into account the interests of the customers, employees and partners of France Telecom Cable.
The agreement signed with the new partners include terms and conditions allowing France Telecom and Canal+ Group to divest their stakes in the medium term.
Upon completion of the transaction, which is expected to close in the first half of 2005, the ownership structure of the new entity will be as follows:
50.01 per cent for Cinven
10.01 per cent for Altice
19.99 per cent for France Telecom
19.99 per cent for Canal+ Group
Canal+ Group Press Contacts
Laurence Gallot
Tel. +33 1 71 35 02 22
laurence.gallot@canal-plus.com
Benoit Liva
Tel. +33 1 71 35 01 66
benoit.liva@canal-plus.com
France Telecom Press Contacts
Tel : +33 1 44 44 93 93
Nilou du Castel/Bertrand Deronchaine/Caroline Chaize
nilou.ducastel@francetelecom.com
bertrand.deronchaine@francetelecom.com
caroline.chaize@francetelecom.com
Source: BBC Monitoring Media
Related Articles
- France Telecom Acquires Groupe Diwan for $36m
- France Telecom Mobile Satellite Communications Offers New Pricing Programs for Connexion By Boeing Maritime Service
- Research and Markets: Get an Insight into the Latest Activities of France Telecom Neuf Cegetel, Groupe Iliad, SFR and Bouygues Telecom
- France Telecom to Buy Amena Stake for $7.7B
- France Telecom to Buy Up Rest of Equant
- Level 3 Signs Multi-Year Transmission and Colocation Services Agreement With France Telecom
- Marconi and France Telecom Form Technology Agreement for Advancement of RF Optimization Software for Mobile Operators
- France: Canal+ and France Telecom to combine cable TV operations
- France Telecom offers EUR3.9bn to buy out remainder of Wanadoo
 |
 |
User Comments (0)
RSS Feeds