NextFin News - Telecom tycoon Patrick Drahi has narrowed the field of potential buyers for a controlling stake in XpFibre, the French wholesale fiber-to-the-home operator, as he accelerates a multi-billion-euro fire sale to stabilize his debt-laden Altice empire. According to people familiar with the matter, a shortlist of bidders has been selected to move into the next phase of a process that could value the asset at approximately €8 billion ($8.7 billion).
The shortlist includes heavyweight infrastructure investors such as KKR & Co. and Global Infrastructure Partners (GIP), according to Bloomberg. These firms are vying for Altice France’s 50.01% stake in the venture, which is co-owned by a consortium led by OMERS Infrastructure, AXA IM Alts, and Allianz Capital Partners. The sale represents a critical test of Drahi’s ability to extract premium valuations for his core infrastructure assets at a time when creditors are increasingly skeptical of his broader deleveraging strategy.
The €8 billion price tag sought by Drahi reflects a significant premium over previous valuation attempts. In 2024, similar sale talks reportedly stalled when bids hovered between €6 billion and €7 billion. The current valuation target is supported by a recent €5.8 billion debt refinancing package secured by XpFibre, which signaled strong appetite from lenders for the company’s predictable, inflation-linked cash flows. However, the gap between Drahi’s expectations and the market’s willingness to pay remains a point of contention among analysts.
Stephane Beyazian, a senior analyst at ODDO BHF who has long maintained a cautious stance on Altice’s complex capital structure, suggests that while XpFibre is a "trophy asset," the high valuation may be difficult to achieve in a higher-interest-rate environment. Beyazian’s research typically focuses on the sustainability of leverage in the European telecom sector, and he has frequently warned that Drahi’s aggressive disposal targets may face "execution risk" if market conditions shift. His view is not yet the consensus among sell-side analysts, many of whom believe the scarcity of large-scale fiber assets in Europe will drive a competitive bidding war.
For Drahi, the stakes extend far beyond a single divestment. Altice France is currently grappling with a debt pile exceeding €24 billion, and the billionaire has been locked in a public and often acrimonious standoff with bondholders. He has previously suggested that creditors might need to accept "haircuts" unless they support his disposal plan, a tactic that has soured relations with some of the world’s largest distressed-debt funds. A successful sale of XpFibre at the €8 billion mark would provide a much-needed liquidity injection, potentially easing the pressure to sell other prized assets like the mobile operator SFR at a discount.
The transaction also carries broader implications for the French telecommunications landscape. XpFibre operates a vast network covering millions of homes in medium-to-low density areas, making it a vital piece of national infrastructure. Any change in control will likely face scrutiny from French regulators, who are keen to ensure that investment in the country’s digital backbone remains consistent regardless of Altice’s financial woes. While infrastructure funds are the primary contenders, the possibility of a strategic play by domestic rivals like Orange or Iliad remains a secondary, albeit less likely, scenario given the antitrust hurdles involved.
The outcome of the XpFibre auction will ultimately serve as a barometer for Drahi’s remaining leverage in his fight for survival. If he secures his €8 billion target, it will validate his "hold-out" strategy and provide a template for future disposals. If the bids fall short, the pressure from creditors to undergo a more radical, court-supervised restructuring will almost certainly intensify. For now, the focus remains on the due diligence rooms of KKR and GIP, where the true value of France’s fiber future is being calculated.
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