Drahi agrees to 1.6 billion euro Altice Media sale as debt looms

France’s billionaire Saadé family has agreed to buy Patrick Drahi’s Altice Media, including French news channel BFM TV, for a total enterprise value of 1.55 billion euros (S$2.25 billion). 

The clan’s CMA CGM shipping firm and Merit France family office will acquire 80 per cent and 20 per cent respectively of the share capital, the companies said in a statement on Friday (Mar 15). The deal’s completion is subject to approval by employee representatives and regulators. 

The agreement comes as French-Israeli tycoon Drahi looks to cut a debt pile of more than US$60 billion. Altice France has about 1.8 billion euros of debt coming due in 2025 alone, and 24.4 billion euros due in total. The media and telecommunications giant faces higher borrowing costs after years of aggressive acquisitions, testing its business model. Drahi told investors in September that virtually every part of his empire is for sale.

Shipping billionaire Rodolphe Saadé has entered France’s media industry, acquiring the La Provence and La Tribune newspapers. The Saadé family is working to diversify into media assets that offer prestige and influence, with Altice Media its largest target in the sector.

Bonds issued by Altice France’s holding company, due in May 2027, were up almost 7 US cents on the euro to 71 US cents, the most since they were issued four years ago and the highest since May, according to data compiled by Bloomberg.

Drahi’s companies face further challenges. French prosecutors opened a preliminary probe into potential corruption linked to Altice, Bloomberg News reported last week, months after the detainment of co-founder Armando Pereira and other business associates in Portugal.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

“We can be delighted that a new entrepreneur, Rodolphe Saadé, at the head of a long-established family group with deep roots in our region and a long-term industrial vision, is following in the footsteps of Patrick Drahi and Altice,” Altice France chief executive officer Arthur Dreyfuss said in a statement to employees.

Lazard advised Altice on the deal, while CMA CGM was advised by Morgan Stanley and Messier & Associés, according to people familiar with the matter. BLOOMBERG