French M&A: NSR take on initial offer

What's New: After months of speculation, there is finally an offer for SFR in France. The deal structure is a lot more complicated than we thought it would be, but we think the offer is a fair one. We think the offer implies a synergy payment of €4.2bn, and values the SFR equity at €15/share, if XpFibre, UltraEdge, ATS, Intelcia, and FOT are indeed worth €4bn, as the release suggests. It is good to know that the operators are working together, but we worry slightly that negotiations might be happening in public, which means that the offer might not have been accepted in private.

We will be hosting a call to run through the deal and our thoughts, on Thursday October 16th at 11am ET/4pm London, register for that call HERE.