The Canada Pension Plan Investment Board (CPPIB), U.K.-based private equity firm BC Partners and co-investors have agreed to commit to about 30 percent of the equity in Altice’s proposed US$17.7 billion acquisition of Cablevision Systems Corp, a U.S. cable operator. CPPIB and BC Partners said they are exercising their option to participate as part of an agreement to sell their majority interest in Suddenlink to Altice earlier this year. They will each fund 12 percent of the deal for about US$400 million each, with co-investors taking the balance. The transaction is expected to close in the first half of 2016.
Canada Pension Plan Investment Board and BC Partners to Acquire Stake in Cablevision Systems Corporation
TORONTO, ONTARIO and NEW YORK, NEW YORK–(Marketwired – Oct. 27, 2015) – Canada Pension Plan Investment Board (CPPIB) and Funds advised by BC Partners, BC European Capital IX (“BCEC IX”) together with co-investors, announced today that they have committed to approximately 30% of the equity in Altice’s proposed acquisition of Cablevision Systems Corporation (“Cablevision”), which was announced on September 17, 2015. CPPIB and BC Partners are exercising their option to participate pro rata in the Cablevision acquisition as part of CPPIB and BC Partners’ announced agreement to sell a majority stake in Suddenlink to Altice. CPPIB and BCEC IX will each fund 12% of the acquisition in Cablevision, approximately US$400 million each, with the balance funded by co-investors.
Cablevision is one of the largest cable operators in the U.S., serving millions of households and businesses throughout the greater New York area. Founded in 1973, Cablevision offers a full suite of advanced digital television, voice and high-speed Internet services and valuable local media and programming properties.
“This is an attractive opportunity to invest in a sector that we know well,” said Shane Feeney, Managing Director, Head of Direct Private Equity, CPPIB. “We are pleased to further expand our relationship with Altice, a best-in-class cable operator, and BC Partners, a longstanding fund partner.”
Added Raymond Svider, co-Chairman and a Managing Partner of BC Partners, “We are delighted to continue to invest in partnership with Altice and CPPIB, and are highly confident in Altice’s ability to further enhance network quality, increase customer satisfaction, and meaningfully improve financial performance at Cablevision.”
The transaction is expected to close in the first half of 2016, subject to regulatory and other customary approvals.
About Canada Pension Plan Investment Board
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 18 million contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, New York City and São Paulo, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At June 30, 2015, the CPP Fund totalled C$268.6 billion. For more information about CPPIB, please visit www.cppib.com.
About BC Partners
BC Partners (www.bcpartners.com) is a leading private equity firm with advised funds of over EUR12 billion ($14 billion). Founded in 1986 as one of the few truly pan-European buy-out investors, BC Partners has grown and evolved into a leader in buy-outs, principally investing in larger businesses in Europe and North America through its established network of offices in London, Paris, Hamburg and New York. BC Partners executives operate as an integrated team, acquiring and developing businesses to create value in partnership with management. Since inception, BC Partners has completed 89 investments in companies with a total enterprise value of nearly EUR100 billion.
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