reports
- Allan C. Nichols
Altice returns with substantially better offer to buy out remaining SF...
After 11 months since Altice’s first offer to acquire the shares of SFR it didn’t already own, it is back with a substantially better offer. Its original offer valued SFR’s stock at EUR 24.98 per share based on the value of Altice shares at the time, which it was using to acquire SFR. This offer was pulled after the French securities regulator, the Autorite des marches financiers, opposed the transaction. We were pleased to see the deal collapse, because we felt it significantly undervalue...
- Allan C. Nichols
Altice Returns With Substantially Better Offer to Buy Out Remaining SF...
After 11 months since Altice’s first offer to acquire the shares of SFR it didn’t already own, it is back with a substantially better offer. Its original offer valued SFR’s stock at EUR 24.98 per share based on the value of Altice shares at the time, which it was using to acquire SFR. This offer was pulled after the French securities regulator, the Autorite des marches financiers, opposed the transaction. We were pleased to see the deal collapse, because we felt it significantly undervalue...
- Allan C. Nichols
SFR Reported 2Q Results That Were a Bit Light, but We're Maintaining O...
SFR reported second-quarter results a touch below our expectations, but we are maintaining our EUR 37 per share fair value estimate and narrow moat rating. We believe the shares are undervalued. However, parent company Altice continues to buy shares on the open market and now controls 94.5% of the votes. If it continues to buy stock on the open market, it may be able to force a buyout of the rest of the shares before the company’s recovery pushes the stock price up to our fair value estimate. ...
- Allan C. Nichols
SFR focuses on its fibre footprint to compete.
SFR reported mixed 2016 results with better revenue but weaker margins. We anticipate these two items will basically offset each other and don't expect any significant changes to our fair value estimate. Our narrow moat rating is intact, and we still believe the shares are undervalued. In the fourth quarter, SFR generated organic revenue growth (0.6%) for the first time in six years, which enabled its revenue to only decline 0.4% year over year versus our projection of a 2.4% drop, including acq...
- Allan C. Nichols
BT Settles With Ofcom and Agrees to Legal Separation of Openreach, but...
BT Group announced on March 10 that it had reached an agreement with Ofcom, the telecom regulator, regarding its Openreach division. With this agreement, Openreach will be a legally separate company with its own board of directors, with the majority of directors being independent. However, BT will remain the owner of Openreach. We are pleased to see this settlement, which removes the uncertainty caused by Ofcom's threats to force BT to spin off the business into its own entity. We are maintainin...
- Allan C. Nichols
SFR Reported Revenue Growth in 4Q, Along With Sequential Subscriber Ga...
SFR reported mixed 2016 results with better revenue but weaker margins. We anticipate these two items will basically offset each other and don't expect any significant changes to our fair value estimate. Our narrow moat rating is intact, and we still believe the shares are undervalued. In the fourth quarter, SFR generated organic revenue growth (0.6%) for the first time in six years, which enabled its revenue to only decline 0.4% year over year versus our projection of a 2.4% drop, including acq...
- Allan C. Nichols
SFR Reports Mixed Third-Quarter Results With Weak Revenue, but Strong ...
SFR posted mixed third-quarter results with weak revenue but strong margins. We don’t anticipate any significant changes to our fair value estimate. Our narrow-moat rating remains intact. The firm's revenue declined 2.4% versus our full-year projection of a drop of 2%. However, we believe it made some important progress. We believe SFR’s key advantage is in its superior fibre network, which now passes 8.9 million premises. The firm grew its fibre base 13.4% year over year to 2 million subscr...
- Allan C. Nichols
Altice Terminates Its Offer for SFR’s Shares Due to Opposition From ...
Altice has announced that the French securities regulator, the Autorite des marches financiers, opposed its decision to exchange its shares for those of SFR that it didn’t already own. As a result of the AMF’s decision, Altice has terminated the offer, though it reserves the right to appeal the decision. We are pleased to see the offer terminated, as we believe it significantly undervalued SFR’s shares. While we agree that consolidating SFR wholly into Altice would simplify its structure a...
- Allan C. Nichols
Altice Offers Exchange for All SFR Shares It Doesn't Already Own; We B...
On 5 September 2016, Altice offered 8 shares of its stock for every 5 shares of SFR that it doesn't already own (22.5% of the company). We think this deal significantly undervalues SFR's stock. At the EUR 15.61 price Altice's shares are trading at, it values SFR's shares at EUR 24.98 versus our fair value estimate of EUR 37. With SFR's stock trading at EUR 25.76, the market assumes Altice's shares will rise further as the market recognizes the value it is gaining from this ratio or Altice will n...
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