(Bloomberg) – Broadband provider Altice USA Inc. agreed to sell nearly half of its Lightpath fiber business to Morgan Stanley Infrastructure Partners for approximately $ 2.3 billion.
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Altice expects to receive about $ 1.1 billion in net after-tax cash and debt settlement payment, which values the transaction at $ 3.2 billion. Altice will retain control of the business with a 50.01% stake, the companies said in a statement Tuesday.
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The transaction is intended to help Altice focus on its core business while bringing new capital to Lightpath, which sells fiber optic services to companies in the New York City area. More than 11,400 buildings are connected to the Lightpath fiber network.
Altice’s shares rose as much as 2% in the latest trades after the deal was announced. They were down 11% this year.
Altice, which parted ways with Altice NV from Patrick Drahi in 2018, previously discussed the sale of a Lightpath stake to Stonepeak Infrastructure Partners, Bloomberg reported last year.
The Morgan Stanley transaction is scheduled to close in the fourth quarter. Goldman Sachs Group Inc. was a financial advisor to Altice, while Shearman & Sterling LLP, Mayer Brown LLP, and Ropes & Gray LLP offered legal advice. Evercore was the financial advisor to Morgan Stanley Infrastructure Partners, with Simpson Thacher & Bartlett LLP providing legal assistance.
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