Brookfield Leads Bidding for Drahi’s XpFibre Stake

Brookfield Asset Management Ltd. is emerging as the frontrunner to acquire a controlling stake in telecom tycoon Patrick Drahi’s French fiber optic company XpFibre, according to people with knowledge of the matter. The deal, if completed, would mark a significant shift in the ownership of one of France’s leading fiber infrastructure providers. Brookfield, a global alternative asset manager with over $800 billion in assets under management, has a strong track record in infrastructure investments, including data centers and renewable energy. XpFibre, which operates a vast fiber network across France serving both residential and business customers, is valued at several billion euros. A successful acquisition would give Brookfield a strategic foothold in the European telecom infrastructure market, which has seen increased demand for high-speed connectivity driven by the rise of remote work, streaming services, and cloud computing.

The bidding process has attracted interest from several infrastructure funds, but Brookfield is said to be leading the race. The deal highlights the ongoing consolidation in European telecom infrastructure, as operators seek to pool resources to fund the massive capital expenditures required for fiber-to-the-home (FTTH) deployments and 5G networks. For Drahi, who built his telecom empire through leveraged acquisitions, the sale of a stake in XpFibre could help reduce debt at his Altice group, which has faced financial pressures amid rising interest rates. The transaction also underscores the growing appetite among institutional investors for stable, long-term cash flows from essential infrastructure assets like fiber networks, which are considered less volatile than other asset classes.

Market participants are watching the outcome closely, as the transaction could influence valuations in the fiber optic sector. If Brookfield secures the deal, it may set a benchmark for similar transactions across Europe, where telecom infrastructure assets are increasingly being carved out into separate entities to attract infrastructure capital. Investors should monitor regulatory approvals from French authorities, which may scrutinize foreign ownership of critical national infrastructure. Additionally, competing bids from other infrastructure funds, such as KKR or Macquarie, could emerge before a final agreement is reached. The outcome will also provide insights into the pricing dynamics of fiber assets, which have become a key focus for investors seeking exposure to the digital economy.