Orange has entered into an exclusivity agreement with La Banque des Territoires (Caisse des Dépôts), CNP Assurances and EDF Invest for the sale of a 50% stake and co-control of Orange Concessions.
Orange Concessions will be France’s leading FTTH operator of networks rolled out and operated on behalf of local public authorities. It will encompass 23 public initiative networks (PIN) representing over 4.5 million built or to-be-built plugs. The transaction, which is expected to close at the end of this year, values Orange Concessions at €2.675 billion and Orange will hold a call option that will enable it to take control and consolidate Orange Concessions in the future.
Commenting on the partnership, Stéphane Richard, chairman & CEO of Orange, said: “I am delighted that Orange, Europe’s leader in fibre roll-out, is now set to establish this partnership in its domestic market with recognised investors who share our vision of digital communication infrastructure development.
“Through this partnership, Orange holds the means to pursue the development of fibre in rural areas, by winning new public initiative networks or by participating in market consolidation. This is a key milestone in the delivery of our Engage 2025 strategic plan.
“As to its financial merits, the achieved valuation reveals the value of Orange’s investments in fibre as well as the relevance of such strategic move”.
The networks operated by Orange Concessions on behalf of local public authorities are open to all operators. Fibre roll-out and maintenance will continue to be performed by Orange.
