Bouygues Agrees to Increase Offer for Frances to SFR by EUR1 Billion
Published on: 13th Mar 2014
By: Ian Mansfield
France's Bouygues has confirmed that it has submitted an improved offer to Vivendi with a view to merging Bouygues Telecom and SFR.
Bouygues has decided to lift its offer by slightly more than had been expected, by a total of EUR1 billion -- which it said was affordable due to its expected deal to sell the Bouygues Telecom infrastructure to Free Mobile for around EUR 1.8 billion.
Bouygues is therefore offering Vivendi EUR11.3 billion in cash, equating to an increase of EUR800 million, as well as a 43% interest in the new entity. The company said that its new offer values SFR at EUR15.5 billion pre-synergies and at nearly EUR20 billion factoring in all the synergies. As part of this improved offer, Bouygues' interest in the new entity following the merger would be 52% versus 49% in the previous offer.
An IPO of the new company is also now planned to take place as soon as the merger is completed, offering Vivendi an immediate opportunity to sell its shares in the company if it wants to.