Vivendi Arranging $9.5 Billion of Loans for SFR Subsdiary
Published on: 6th Feb 2014
Note -- this news article is more than a year old.
By: Ian Mansfield
French conglomerate Vivendi is said to be arranging an EUR 7 billion (USD9.5 billion) of loans for its mobile network subsidiary SFR ahead of a long planned spin off of the company.
At the moment, SFR's debt is incorporated with Vivendi, but following the split into two separate companies, SFR will need to refinance its own debt independently.
The financing comprises a EUR1.5 billion credit line and EUR5.5 billion of term loans, people who asked not to be identified because the terms aren't public told Bloomberg News.
The debt would then be partly repaid with the proceeds of a stock market listing.
SFR's chairman and CEO, Jean-Yves Charlier yesterday confirmed that the split of the two companies is going ahead and dismissed recent, and persistent, rumours of a merger for SFR and Numericable.
There have been rumours of a merger between Numericable and SFR over the past couple of years, but the cable operator is now backed by Altice which could raise the funds for an outright purchase.
SFR is estimated to be worth around EUR12 billion, which is significantly higher than Numericable's own market capitalisation of around EUR3.6 billion.
On the web: Bloomberg News