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Plan would split Altice USA from parent; Drahi still in control

Patrick Drahi, founder and controlling shareholder of Altice

Patrick Drahi, founder and controlling shareholder of Altice N.V., speaks at Altice USA in Bethpage May 23, 2017. Credit: Barry Sloan

Cable television, internet and telephone services provider Altice USA Inc. would separate from its parent company under a plan announced Monday but continue to be controlled by majority shareholder and founder Patrick Drahi, officials said.

Under the plan, Amsterdam-based Altice N.V. would distribute its 67.2 percent stake in Altice USA, which serves Long Island, to shareholders.

Altice N.V. formed Altice USA in 2016 after buying Cablevision Systems Corp. of Bethpage and Suddenlink of St. Louis. The new company went public in June with its shares initially trading at $32 on the New York Stock Exchange.

Altice USA owns 25 percent of Newsday Media Group and recently moved its base to Long Island City, Queens, from Bethpage.

The Altice USA board on Monday agreed to pay a $1.5 billion cash dividend to shareholders before separation from Altice N.V, which will become Altice Europe.

“The separation will allow both Altice Europe and Altice USA to focus their respective operations and execute against their strategies . . . and realize their full potential,” Drahi said.

The announcement came after the stock market closed on Monday. In after-hours trading, Altice USA shares were up 41 cents to $21.50.

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