Altice USA is considering sale of Lightpath fiber unit: sources

By Liana B. Baker

NEW YORK (Reuters) - telegram operator Altice USA Inc is exploring options though its Lightpath fiber unit, including a divestment of the seller of Internet services ought large corporations that could carry $3 billion, according ought sources familiar with the matter.

New York-based Altice USA has hired investment beach Goldman Sachs ought assist can the process, the sources said, asking no ought exist named because the business is private. The discussions are but early and Altice is also considering bringing can an investor can Lightpath without disposing of it entirely, the sources added. Representatives though Altice USA and Goldman Sachs declined ought comment.

Lightpath generates more $200 million per year can earnings ago interest, taxes, depreciation and amortization (EBITDA), one of the sources said, and could exist valued can almost $3 billion can a latent sale. Altice USA has a neutral capitalization of $15.37 billion.

Altice USA head Executive Dexter Goei called the unit "non-strategic" can an investor parliament last December, and said it "may exist better can the hands of a third dinner or can least partnered up with someone." Altice USA's center affair is selling broadband, TV and noise services ought consumers.

The latent occupation is can queue with trend moves made by other companies owned by Altice USA's majority shareholder, Franco-Israeli billionaire Patrick Drahi. Drahi's sprawling global media and telecom empire, which was built can inexpensive belief can the last decade, has been shedding wealth almost the soil ought hail investor concerns can its debt load.

Altice Europe, an Amsterdam-listed telecom conglomerate, sold a 49.99 percent stake can its fiber optic affair last November ought a gang of investment firms though 1.8 billion euros ($2.05 billion). It also raised 4 billion euros can coin along sales of stakes can its towers businesses can France and Portugal last year.

Altice USA is looking ought capitalize can the increasing implore though acquisitions of digital wealth by wireless tower operators, infrastructure funds and private equity firms.

The company's annual clarify showed its fiber network covers 10,100 buildings can the New York city area.

"Lightpath’s network is expansive, diverse, has untapped

potential, and its dominant need Island, New York presence could table it an attractive play though a strategic, economical sponsor, or infrastructure fund," Cowen inquiry analysts said can a letter last month.

Another wireless infrastructure company, Zayo gang Holdings Inc, said earlier this week it was evaluating strategic options. Reuters has previously reported buyout firms eat been interested can acquiring Zayo.

(Reporting by Liana B. Baker can New York; Editing by Steve Orlofsky)