Altice International Converts €2.5 Billion of Intragroup Debt Into Meo Portugal Capital on 8 May — Operator's Share Capital Lifts From €17 Million to €2.535 Billion as Drahi's November 2025 Unrestricted-Subsidiary Defence Hardens Into a Liquidity Wall

Altice International executed a €2.5 billion capital increase in kind at Meo Portugal S.A. on 8 May 2026, converting intragroup debt into share capital and lifting the operator's registered share capital from roughly €17 million to €2.535 billion in a single move recorded on the public Portaria 590/2004 atos-societários portal. ECO reported the operation on Wednesday 13 May 2026, confirming with an official Meo source that the transaction "does not result from the booking of specific assets but from the conversion of intragroup debt into capital," and that it took place within the package of "proactive measures" Altice International disclosed to investors on 28 November 2025.

The 8 May Operation

The capital increase is in espécie — non-cash, debt-for-equity — and roughly 150 times the size of Meo's pre-existing share capital. Whatever intragroup loan obligations Meo owed up the corporate chain to Altice International have been cancelled and re-expressed as equity in the Portuguese operating company, taking interest expense off the Portuguese P&L and substituting it with a larger equity cushion at the level of the Lisbon-headquartered subsidiary that owns the country's number-two telecoms network.

An official Meo statement to ECO said the move was designed "to strengthen the group's liquidity position and contribute to its long-term financial stability."

The November 2025 Backdrop

The 8 May conversion lands inside a defensive perimeter Patrick Drahi started building on 28 November 2025. That day Altice International told bondholders that Portugal and the Dominican Republic — together representing about 80% of Altice International EBITDA — would be redesignated as "unrestricted subsidiaries." The classification, perfectly legal under the indenture documents but considered "superaggressive" by investors quoted at the time by the Financial Times, moves those operating units beyond the reach of the holding's existing creditors.

In the same November communication Altice International announced a "strategic evaluation" of its portfolio, telling the market the review would assess "potential disposal options over the coming years" with the aim of "reinforcing financial flexibility and supporting Altice International's broader capital-structure initiatives." The group also told investors it had reserved €2 billion of "additional debt capacity" inside Altice Portugal to back the review and any subsequent sale processes, and confirmed that one Altice Portugal unit had completed a €750 million financing line — partly to refinance parent-company debt and partly for working capital.

Where Altice International Sits Today

Altice International — the arm of the group that owns Altice Portugal which in turn owns Meo — is the least-leveraged piece of Drahi's empire. ECO reads the latest accounts at slightly under €8 billion of net debt at an average coupon of 5.8%. That is a substantial pile but a manageable one compared with the parallel French entity, Altice France (the owner of SFR), which closed 2025 with €15.6 billion of net debt and is in the final week of a sale process to a Bouygues-Free-Orange consortium for €20.35 billion. The exclusive-negotiation window with the three French rivals expires on 15 May 2026.

How the Conversion Changes the Picture in Lisbon

The mechanical effect is that Meo Portugal now carries a much larger equity base. A capital cushion of €2.535 billion makes the Portuguese operator a more attractive standalone target if Altice International eventually goes through with disposals — and it makes any future Meo dividend or capital-distribution mechanic far less constrained by accounting equity tests. The trade-off is that intragroup debt servicing — which had been creating interest deductibility at the Portuguese tax base — disappears.

The operation also extends the December 2024 logic that broke down the Saudi Telecom (STC) sale negotiations for Altice Portugal. A year on from that failed process, Drahi has chosen to keep Portugal inside the group, fortify its balance sheet and run a strategic review rather than a direct headline auction.

What to Watch

The 15 May deadline on Altice France's sale will tell the market whether Drahi can complete his French exit and concentrate the surviving group around the Portuguese and Caribbean cash generators. Meo's published accounts for 2025 — when they are filed — will show the equity uplift and the new intragroup capital position. The €2 billion of reserved additional debt capacity at Altice Portugal remains undrawn for now; any tap will likely come in conjunction with a partial-disposal process rather than a refinancing.

Sources

ECO, "Altice reforça liquidez com conversão de 2,5 mil milhões de dívida da Meo em capital," 13 May 2026; Altice International investor communication, 28 November 2025; Portaria 590/2004 atos-societários portal.