AXA Private Equity is to divest its majority stake in Outremer Telecom, a French telecom operator, to specialist fund Altice.
The Paris-headquartered firm originally invested in the business in June 2011, paying €133 million for a 52.26 percent stake. It is now selling a 67 percent holding in the group, a source close to the matter told Private Equity International.
The transaction prices the business at nearly double its 2011 enterprise value, according to local reports. It will see Outremer’s founder and management team reinvest in the company alongside Altice.
Created in 1986, Outremer Telecom provides telephony and internet services to customers in the French overseas territories, which include islands in the Indian Ocean and the Antilles as well as Guyana. It posted sales of €195 million last year.
It is the second investment by Altice over the last few weeks, after its acquisition of Portuguese operator Oni Communications from Riverside earlier this month. The fund sees great potential arising from increasing concentration in European markets, underpinned by a mix of economic pressure, regulation and technologic evolution.
“Following our recent announcement in Portugal, this transaction continues Altice's strategy of expansion and growth through very attractive in-market consolidation opportunities,” said Dexter Goei, chief executive of Altice, in a statement.
AXA is currently raising its latest large-cap vehicle, LBO Fund V, with a target of €2 billion. Launched last year, the fund held a first close on €1.1 billion in March.