Vivendi considers SFR merger with Numericable

15 October 2012 |


French media group Vivendi is reportedly in talks regarding a multibillion euro merger of its telecoms operation SFR with cable operator Numericable.

Should the deal go ahead, it would combine France’s second largest mobile operator with one of its largest cable groups.

Discussions began in recent weeks, according to sources speaking to the Financial Times, and are just one of the options being considered by the media group as it engages in a restructuring programme.

The deal would involve the merging of both companies into a new entity, 49% owned by Vivendi and 51% by Numericable.

With SFR estimated to be worth €15 billion and Numericable €4 to €5 billion, a large cash payment in the region of €4 billion would be required as part of the merger, reports the FT.

The cash would be used to pay off part of Vivendi’s €14 billion debt.

The media group is also reviewing sales of some of its other telecoms assets to raise funds, including Brazillian operator GVT and its stake in Morocco’s Maroc Telecom.