Tycoon Drahi Near Launch of €9 Billion XpFibre Stake Sale

Telecom tycoon Patrick Drahi is preparing to launch the sale of a controlling stake in French fiber optic company XpFibre, according to people with knowledge of the matter. Advisers have sent out preliminary information on the business and could kick off a sale process as soon as next week. First-round bids are expected in early March.

Drahi owns 50.01% of XpFibre through Altice France SA and could seek an enterprise value of €9 billion or more for the firm, including its roughly €5 billion in debt. Deliberations are ongoing, and the details of the planned sale could change.

XpFibre has previously attracted interest from investors but discussions stalled due to disagreements over valuation. A consortium led by Omers Infrastructure, which also includes Allianz Capital Partners and AXA IM Alts, holds the rest of XpFibre.

Why the Move Happened

Drahi, who owns telecom assets around the world, has spent years on a debt-fueled dealmaking spree. He's now looking to sell off a number of his businesses to pay down loans. Last year, Altice France and a majority of its creditors reached a deal to slash the company's debt by €8.6 billion.

A kickoff would come as Drahi puts most of his French telecom assets on the block, starting with phone carrier SFR. The carrier attracted a €17 billion bid in October from a consortium comprised of Bouygues Telecom, Iliad SA, and Orange SA, but the offer was immediately rejected as too low.

How Markets Responded

XpFibre is separate from SFR and consists of fiber-to-the-home infrastructure that delivers high-speed internet across France. It is the largest independent Fibre-to-the-Home operator in France.

The sale of XpFibre could provide a significant return for Drahi and his investors. A consortium led by Ardian, KKR & Co., and Global Infrastructure Partners all previously competed for XpFibre in 2024.

What Analysts Are Watching

Assured Guaranty (Europe) SA issued a five-year debt service reserve (DSR) guarantee for XpFibre in December 2025. The €175 million DSR guarantee replaces a portion of an existing DSR facility provided by various banks.

The DSR guarantee is a cost-effective alternative to traditional DSR facilities offered by banks. XpFibre's financial structure and debt servicing are key areas of focus for potential buyers and analysts as the firm goes through the sale process. Investor interest remains strong, but the valuation remains a sticking point. The market will be watching to see if the €9 billion or higher valuation aligns with current market conditions and the company's financial performance.