The alternative operator has just announced that it has raised more than €500 million in equity and junior debt from a pension fund to ensure the deployment of a fibre optic network and the recovery of Kosc.

Subject to approval by the regulatory and competition authorities, these two transactions are expected to be finalised in the fourth quarter of 2020. "These two transactions demonstrate our ambition in the fibre market in France and beyond. In a context of sector consolidation, these investments will enable us to pursue our growth strategy with the aim of strengthening our position as the leading independent operator", said David Elfassy, President of Altitude Infrastructures.

The takeover of Kosc should now enable Altitude Infrastructure to develop its addressable customer base in very dense and moderately dense areas, where the bulk of the Wholesale-only operator's business is located, which claims around ten million eligible outlets in these areas.

The alternative infrastructure operator is also planning a massive investment of 100 million euros over five years in Kosc. With this new fund raising, this welcome injection of capital now has all the green lights. As a reminder, the plan proposed by Altitude Infrastructure would enable Kosc to aim for a return to a positive Ebitda and a turnover of between 80 and 100 million euros in 2022.

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Source : ZDNet

On 26 June, Bouygues Telecom announced that it had "signed an exclusive agreement with Euro-Information, a Crédit Mutuel group company, with a view to acquiring 100% of the capital of its subsidiary Euro-Information Telecom (EIT) and entering into an exclusive distribution partnership". Little known to the general public, this operator markets its packages under the Crédit Mutuel Mobile, CIC Mobile, NRJ Mobile, Auchan Telecom or Cdiscount Mobile brands. Existing since 2015, it has its own core network and agreements as a virtual operator with Bouygues Telecom, Orange and SFR.

An agreement that "is fully in line with Bouygues Telecom's growth strategy". EIT is France's leading alternative operator with a distribution network of "more than 4,200 Crédit Mutuel local branches and CIC bank branches, 30,000 customer advisers" and a customer service team of more than 550 people.

As a reminder, Bouygues Telecom claimed a fleet of mobile rate plans excluding MtoM of "11.7 million customers at the end of March 2020" while Euro-Information Telecom announced that it had passed the "2 million customer mark" at the end of November 2019. A purchase that could therefore enable Bouygues Telecom to come back neck and neck with Free Mobile and its 13.3 million subscribers.

It is also specified in the press release that "the acquisition price includes a fixed portion of 530 million euros payable at closing and an additional portion of between 140 and 325 million euros, subject to the achievement of economic performance criteria and payable over several years".

Subject to the agreement of the competent authorities, the operation should be finalised by the end of 2020.

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Source : Nextinpact