Altice to Spin off U.S. Unit
Patrick Drahi will retain control of the cable giant that owns Cablevision and Suddenlink in the U.S., as well as Altice Europe.
Cable giant Altice, which owns the former Cablevision Systems and a controlling stake in Suddenlink in the U.S., is planning to spin off its U.S. unit.
The move will separate Altice USA from Altice Europe to "enable each business to focus more on the distinct opportunities for value creation in their respective markets and ensure greater transparency for investors," the company said.
Dexter Goei will continue to serve as CEO and a director of Altice USA, reporting to Altice founder Patrick Drahi who will be chairman of Altice USA. Dennis Okhuijsen will be the CEO and a director of Altice Europe, also reporting to Drahi who will retain control of both companies. The company emphasized that he "is committed to long-term ownership."
Altice said it is planning to complete the reorganization by the end of the second quarter. It will happen via the spinoff of the company's 67.2 percent stake in Altice USA to Altice shareholders.
"The separation will allow both Altice Europe and Altice USA to focus on their respective operations and execute against their strategies, deliver value for shareholders and realize their full potential," Drahi said. "Both operations will have the fundamental Altice model at their heart through my close personal involvement as well as that of the historic founding team."
Altice USA had its stock market debut last summer. The IPO was seen as giving the company, already the fourth-largest U.S. cable operator behind Comcast, Charter Communications and Cox Communications, a currency in the form of its stock that it could use to help it make further acquisitions.