The operator is also enmeshed in an accounting scandal in Portugal
The Altice group, which is controlled by billionaire Patrick Drahi, is looking to sell off its opco in Portugal to help reduce its debt mountain of €60 billion, as the cost of servicing debt rises with inflation.
The Portuguese business newspaper, Jornal Economico, says Altice has received three non-binding offers for the country’s former incumbent. It says all three are thought to be well below Drahi’s valuation, which is more than €7 billion valuation that Bloomberg reported last month, citing some funds.
Previously Drahi tried and failed to sell Portuguese assets, but had no takers as the price was too high.
Now he has the additional problem that the company is tainted by a financial scandal. Earlier this year, Altice’s co-founder, Armando Pereira, was put under house arrest in Portugal, accused of corruption via the operator’s procurement.
In November, Altice stated that it is the victim, not the perpetrator, of the fraud and has severed ties with all parties implicated in the scheme, clearly trying to draw a line under the matter.
Nevertheless, until the investigation and court case is complete, it is likely potential buyers will be extremely cautious about the potential fall-out and liabilities, and of course, what else could be uncovered in the investigation.