By Jonathan Easton
Orange Belgium has entered into exclusive talks to buy a 75 per cent stake of regional telco VOO SA.
The deal, which will see Orange acquire 75 per cent of the capital minus one share of VOO, is based on an enterprise value of €1.8 billion(US$2.03billion) for 100 per cent of the company.
VOO SA owns the cable network in the Walloon region and part of the Brussels region. It owns a portfolio of fixed and mobile telephony along with broadband, internet and television services.
Orange said that the acquisition will enable it to operate a high-speed network in the relevant regions in a move which is “reinforcing the deployment of its convergent strategy at a national level.”
Orange Belgium also said that it will finance the deal by increasing its debt with the support of its French parent company.
One party not happy with the deal is rival operator Telenet. Telenet had stated an interest in acquiring VOO to create a single Liberty-backed Belgian competitor to Proximus, but the operator has issues a statement confirming that “it was not withheld by Nethys SA to enter into exclusive negotiations to acquire a majority shareholding in the Walloon cable operator VOO SA.”
Telenet said that it will “assess the decision and consider its further options.”
