Altice USA split from Altice N.V. underway

Altice USA and Altice N.V. say that the previously announced separation of the U.S. subsidiary from Altice N.V. has been fulfilledThe separation occurred through a distinctive distribution by Altice N.V. of its 67.2% interest in Altice USA to Altice N.V. shareholders from its share premium reserve. The distribution did not include shares indirectly owned by Altice N.V. through Neptune Holding US LP, said Altice N.V.

Altice USA (NYSE: ATUS) and Altice N.V. (Euronext: ATC, ATCB) say that the previously announced separation of the U.S. subsidiary from Altice N.V. has been fulfilled. The separation occurred through a distinctive distribution by Altice N.V. of its 67.2% interest in Altice USA to Altice N.V. shareholders from its share premium reserve. The distribution did not include shares indirectly owned by Altice N.V. through Neptune Holding US LP, said Altice N.V.

As a result of the separation, Altice N.V. is changing its name to "Altice Europe N.V." Altice USA has filed a registration statement relating to the distribution, including a US prospectus in connection to the shares of Altice USA common stock to be distributed, which was declared effective by the SEC in May.

Altice N.V. says it has appointed Patrick Drahi to serve as chairman of the Altice Europe N.V. board of directors, effective immediately. The appointment will end in 2022, following the annual general meeting. Charles Stewart and Gerrit Jan Bakker have also been appointed to the Altice USA board of directors. Stewart will continue to serve as co-president and chief financial officer of Altice USA, while Bakker will continue to serve as treasurer of Altice Europe (ATC & ATCB).

Altice USA was formed through a series of European-based Altice N.V. acquisitions. In July of 2017, the subsidiary combined its Lightpath, Optimum Business, and Suddenlink Business brands to form Altice Business (see "Altice USA forms Altice Business unit"). Altice acquired the three business brands through its purchases of Cablevision and Suddenlink (see "Altice to buy Suddenlink; eyes TWC?" and "Altice completes Cablevision buy, forms Altice USA, shuffles management").

Altice Business serves about 4.9 million residential and business customers across 21 states through its Optimum and Suddenlink brands. Its network includes 14,000 fiber-lit locations, more than 8,000 of which are located in the New York metro area.

The company's embrace of fiber to the premises rather than DOCSIS 3.1 for gigabit broadband has separated it from many of its fellow cable MSOs (see "Altice USA to light up 1 million homes in FTTH network").

Based on Altice N.V. instructions, 0.4163 shares of Altice USA common stock for every share held by shareholders in Altice N.V.'s capital was transferred to each shareholder of Altice N.V. Between May 24, 2018 and June 4, 2018, each Altice N.V. shareholder was able to select the percentage of shares of Altice USA Class A common stock and shares of Altice USA Class B common stock such shareholder would receive in the distribution, by which a cap of 50% of the total shares of Altice USA common stock being distributed was implemented.

The shares of Altice USA Class B common stock offered to Altice N.V.'s shareholders of record who elected to accept them were subject to proration because the Class B cap has been surpassed. Such shareholders received shares of Altice USA Class A common stock instead of the portion of shares of Altice USA Class B common stock that was curtailed says the operator. Altice N.V. shareholders who did not make an election were given shares of Altice USA Class A common stock.

The total number of shares of Altice USA Class A common stock that has been distributed is 247,683,489. The total number of shares of Altice USA Class B common stock that has been distributed is 247,683,443. These numbers represent the conversion of 23 shares of Altice USA Class B common stock into Altice USA Class A common stock for selling in the open market. According to Altice N.V., there will be 489,384,523 shares of Altice USA Class A common stock and 247,684,443 shares of Altice USA Class B common stock outstanding after the distribution.

For related articles, visit the Network Design Topic Center.

For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer's Guide.

More in Network Design