Telenet Group BVBA, a direct subsidiary of Telenet Group Holding NV (\"Telenet\") (Euronext Brussels: TNET), has entered into a definitive agreement to acquire Coditel Brabant SPRL for \u0080400 million on a cash and debt free basis from Coditel Holding S.A., a subsidiary of Altice N.V. Coditel Brabant SPRL, operating under the SFR brand (formerly Num\u00e9ricable), provides cable services to households and businesses in Brussels, Wallonia and Luxembourg and offers mobile telephony services in Belgium through an MVNO Agreement with BASE[1]. Through this acquisition, Telenet would extend its cable footprint beyond the current Flemish and Brussels coverage areas to parts of Wallonia and the Grand Duchy of Luxembourg, while covering roughly two-thirds of the Brussels footprint post this acquisition. Following the acquisition of the Belgian mobile operator BASE in February 2016, Telenet has been pursuing a strategy of positioning itself as a leading provider of converged connected entertainment and B2B services nationwide. The acquisition of SFR BeLux would give a major part of Brussels and part of Wallonia access to Telenet's high quality video, high-speed internet and fixed and mobile telephony services. The transaction is subject to customary closing conditions, including approval from the relevant competition authorities.
Key highlights
John Porter, Telenet CEO: \"We are very pleased with the acquisition of SFR BeLux as it would enable Telenet to extend its geographical footprint and offer approximately 90,000 customers in Belgium and 15,000 customers in the Grand Duchy of Luxembourg the high-quality services for which our company has already won acclaim. Following the BASE acquisition that was concluded in the beginning of the year, we have entered a new phase of growth and this acquisition is a next, very important step in this strategy. Our ambition is to have the best networks (fixed and mobile) and the best services (landline and mobile telephony - high-speed Internet - digital TV) in Belgium. We are also very delighted to be able to launch our great services in the Grand Duchy of Luxembourg on our own network.\"
SFR BeLux at a glance
SFR BeLux is a subsidiary of Coditel Holding S.A., a subsidiary of Altice N.V. SFR Belux offers telecommunications services in Brussels (television, Internet, and landline telephony), where its cable network covers six municipalities. The company's cable network also covers the municipalities of Wemmel and Drogenbos in Flanders. SFR BeLux also operates the cable network of the intermunicipal company AIESH in the \"boot of Hainaut\". The company has over 90,000 customers in Belgium.
Information about the areas that are currently covered by the SFR network in Belgium: http://www.sfr.be/fr/eligibilite.
SFR BeLux also operates in the Grand Duchy of Luxembourg, where it has approximately 15,000 customers. Information about SFR Belux's network coverage in the Grand Duchy of Luxembourg: http://www.sfr.lu/eligibilite.
SFR BeLux has operated as an MVNO since the end of 2014, selling mobile telephone services under its own brand name using BASE's 2G, 3G and 4G mobile network.
[1] Former BASE Company NV, currently known as Telenet Group BVBA
[2] The estimated 2016 Adjusted EBITDA (as customarily defined by Telenet) of \u008045.7 million under EU IFRS is based on SFR BeLux management's forecasts, as adjusted by Telenet management
[3] Projected annual run-rate synergies by 2021 are split evenly between (1) incremental EBITDA derived from revenue-related synergies and (2) cost-related synergies and are based on Telenet management's assumptions