Brookfield Leads XpFibre Bid for Drahi's French Fiber Stake
1h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
brookfield-asset-managementpatrick-drahi
Fazen Markets Editorial Desk
Collective editorial team · methodology
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Brookfield Asset Management Ltd. is the leading bidder for a controlling stake in telecom magnate Patrick Drahi’s French fiber optic company XpFibre. The potential acquisition, reported on June 19, 2026, signals continued strong institutional appetite for European digital infrastructure assets. A successful deal would further consolidate Brookfield’s substantial portfolio in the sector.
Patrick Drahi’s Altice France initiated a strategic review of its XpFibre asset in early 2026 to reduce its substantial debt burden. The company faces pressure from high use in an environment of elevated interest rates. The European Central Bank’s main refinancing rate stands at 3.75%, increasing financing costs for highly indebted corporations.
Fiber optic networks represent critical infrastructure with predictable, long-term cash flows, making them attractive to pension funds and infrastructure investors. The last major comparable transaction occurred in November 2025 when KKR acquired a 49% stake in Telecom Italia’s fiber network for 2.2 billion euros. That deal valued the asset at an enterprise value to EBITDA multiple of approximately 18x.
This divestiture is part of Drahi’s broader effort to streamline operations and strengthen Altice France’s balance sheet. The company has been working to reassure creditors and investors about its financial stability amid challenging market conditions for the telecom sector.
XpFibre operates one of France’s largest fiber optic networks, covering approximately 10 million premises passed across the country. The company reported EBITDA of 350 million euros in its most recent fiscal year. Based on comparable transactions, the potential enterprise valuation could reach 6-7 billion euros.
Altice France’s net debt stood at 24.1 billion euros as of December 31, 2025. The company’s debt-to-EBITDA ratio exceeds 6x, significantly higher than the sector average of 3-4x. A successful sale would provide substantial proceeds toward debt reduction efforts.
Brookfield’s infrastructure arm manages approximately 450 billion dollars in assets globally. The firm has deployed over 15 billion dollars in digital infrastructure investments worldwide since 2020. European fiber assets typically trade at premium valuations compared to North American counterparts, reflecting more mature regulatory frameworks and denser population coverage.
| Metric | XpFibre | Sector Average |
|---|---|---|
| EBITDA Margin | 45% | 38% |
| Projected Revenue Growth | 7% | 5% |
| EV/EBITDA Multiple | 18x | 15x |
The transaction would benefit Altice France bondholders (FR0014005TU2) by accelerating deleveraging plans. Credit spreads on the company’s debt could tighten by 50-75 basis points upon announcement. European telecom equipment suppliers Nokia (NOKIA.HE) and Ericsson (ERICB.ST) may see increased orders from expanded network investment.
A counterargument exists that Brookfield may overpay for the asset given intense competition for scarce infrastructure properties. Multiple consortia, including Macquarie and EQT, previously expressed interest in XpFibre, potentially driving valuation beyond fundamental levels. Regulatory scrutiny could also emerge regarding foreign ownership of critical national infrastructure.
Infrastructure funds have been accumulating long positions in European telecom assets throughout 2026. Pension fund allocation to digital infrastructure has increased from 3% to nearly 7% of alternative portfolios since 2022. Short interest in Altice France shares declined by 15% over the past month as restructuring prospects improved.
The Altice France board is expected to make a final decision on the XpFibre stake sale by July 15, 2026. French regulatory approval would be required for any ownership transfer of critical infrastructure assets. The Autorité de la concurrence typically reviews such transactions within 60-90 days.
Investors should monitor Altice France’s second-quarter earnings release on August 5, 2026 for updated guidance on deleveraging timelines. Brookfield Infrastructure Partners (BIP) may issue new equity or debt to fund the acquisition, with potential market impact depending on the size of the capital raise.
Key levels to watch include the 4.50% yield on French 10-year government bonds (OATs), which would significantly affect infrastructure valuation models. The Euro Stoxx Telecom Index (SX7E) has resistance at the 250-day moving average of 215 points, a breakout above which could signal sector momentum.
Brookfield’s pursuit validates premium valuations for fiber optic networks across Europe. Competing assets including Vodafone’s Vantage Towers and Deutsche Telekom’s GDZ fiber unit may see increased investor interest. Infrastructure funds require scale, making large platforms like XpFibre particularly attractive for billion-dollar allocations.
The potential valuation multiple of 18x EBITDA exceeds the 15x average for European fiber deals in 2025. This premium reflects XpFibre’s mature network coverage and France’s supportive regulatory environment. The deal size would rank among the top three European digital infrastructure transactions since 2020.
The French government maintains golden power rules allowing intervention in strategic sectors including telecommunications. Regulators will examine market concentration concerns, though XpFibre primarily operates as a wholesale provider. Foreign investment review procedures typically require 60-90 days for approval of critical infrastructure assets.
Brookfield's potential acquisition underscores institutional demand for mature digital infrastructure with predictable cash flows.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
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