(Bloomberg) — Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.French phone carrier Iliad SA will pursue a 1.4 billion euro ($1.5 billion) share buyback financed by its founder Xavier Niel, a move that could significantly boost the billionaire’s controlling stake in the company.Iliad plans to repurchase about 11.7 million of shares — about 20% of its share capital — at a price of 120 euros apiece, representing a 26% premium to Iliad’s closing price on Monday. The offering will be funded by a share issue guaranteed in full by Niel, who doesn’t plan to tender any of his stock in the buyback. If all other shareholders tender their shares and no other existing holders get involved in the capital increase, Niel’s stake in the company could rise from just over 52% to 72%, Chief Executive Officer Thomas Reynaud said on a call with journalists. The buyback is in response to investor interest and shows shows Niel’s confidence in Iliad’s strategy, Reynaud said.Iliad announced the offering as it reported third-quarter results that demonstrated better-than-expected improvements in its French and Italian units.The low-cost carrier gained 32,000 net new broadband subscribers in France, helped by its fiber offering. Iliad’s total subscribers of 19.72 million at the end of the period in France was above analysts’ estimates for about 19.68 million, according to a company-compiled consensus. In Italy, it had 4.54 million mobile subscribers, compared with an estimate of 4.36 million.Revenue of 1.34 billion euros was ahead of the average analyst estimate for 1.33 billion euros.(Updates with possible Niel ownership boost in third paragraph)To contact the reporter on this story: Angelina Rascouet in Paris at [email protected] contact the editors responsible for this story: Rebecca Penty at [email protected], Jennifer RyanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
