Altice has confirmed that the corruption case will not impact its cash or liquidity, and its financial guidance for the year remains unchanged.
The case revolves around Mr Pereira, who was among those arrested in Portugal as part of “Operation Picoas”. A large-scale investigation conducted by officials resulted in the raids of numerous locations, including offices, homes, and law firms throughout the country.
Portuguese authorities reported three arrests and the seizure of documents and assets, including luxury cars, with an estimated value of €20 million (£17.2 million).
Prosecutors allege that Mr Pereira participated in fraudulent property transactions and concealed profits from asset sales during his tenure at Altice Portugal. One of the transactions under scrutiny is the sale of four buildings in Lisbon for €15 million.
However, authorities believe that this may only be the tip of the iceberg, as the fraudulent schemes could potentially extend to other areas such as football TV rights.
Reports suggest that illicit gains could surpass €250 million, leading to losses for both Altice and the state.
A lawyer representing Pereira stated that his client had been subjected to a widespread attack in Portugal in recent days. The lawyer added, “The communication surrounding this operation was conducted in a manner that immediately presumed his guilt in the court of public opinion. The reality is not as simple as it seems, and our team will demonstrate that.”
Mr Drahi, the CEO of Altice, expressed his belief that if the allegations are true, the individuals involved carefully concealed their actions from him, his colleagues, and the entire group. He further stated, “I have confidence in our governance and trust in all of our management teams.”
Altice is one of France’s largest telecoms companies with operations in countries such as the Dominican Republic, Israel, and Portugal.
Mr Drahi is known for his cost-cutting strategies and debt-funded deal-making. Last year, he took Altice private in a deal valuing the company at €6.4 billion.
In May, the billionaire increased his stake in BT to nearly 25%, putting him on the brink of a blocking stake in the British telecoms giant.
Altice UK, Mr Drahi’s investment vehicle, has clarified that it has no intention of making a takeover offer for BT and that Mr Drahi is not seeking a seat on the company’s board.
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