Cinven has decided to roll its entire residual holding in Numericable into Altice following Altice/Numericable’s agreement to acquire SFr from Vivendi.
Cinven and Altice created Numericable via a series of acquisitions through a classic “buy and build” strategy, latterly in partnership with Carlyle.
Cinven (70 per cent) and Altice (30 per cent) initiated together in 2005 the creation of Numericable Group via the acquisition of Numericable in March 2005 and Altice One, acquired in November 2005.
The group consolidation took numerous steps involving five acquisitions and seven re-financings from 2005 to 2013.
By year end 2007, Numericable had its current group, and Carlyle came into the capital in 2008 taking 38 per cent along Cinven 38 per cent and Altice 24 per cent.
Thanks to refinancing and partial sale, Cinven had already returned its capital by 2008.
With the IPO and the SFR/Numericable deal, Cinven generates an IRR of 160 per cent and a capital gain of more than EUR1.5bn of which EUR1.25bn will be in cash (EUR1bn returned to date and another EUR0.25bn to come in nine months), and EUR0.25bn in shares of Altice (at the current market price) following the roll over agreement signed this weekend with Altice.
“Numericable build up and ultimate acquisition of SFr is a case study of what Cinven and private equity can bring to a entrepreneur and make the common vision come true with patience. The ultimate rewards for our LPs clients are proportional to the strategic achievement,” says Nicolas Paulmier, partner of Cinven.
