France's Orange aims to add Belgian fixed line through VOO deal (updated)

Orange Belgium NV

23/11/2021 10:20

(Adds details, background)
    By Mathieu Rosemain and Sudip Kar-Gupta
    PARIS, Nov 23 (Reuters) - Orange, France's largest telecoms
operator, set out a shift into Belgium's fixed line business on
Tuesday, with plans to buy a majority stake in VOO SA in a deal
valuing the firm at 1.8 billion euros ($2 billion).
    The move illustrates Orange's  ORAN.PA  strategy of being
able to deliver 'convergent offers' in both broadband and mobile
to customers in all European countries where it operates and
follows a surge in interest in telecoms dealmaking.
    The broader sector is seeing an increase in potential M&A,
with KKR approaching Telecom Italia  TLIT.MI  about what would
be Europe's biggest ever private equity buyout.  urn:newsml:reuters.com:*:nL8N2SD1CT
    Orange Belgium  OBEL.BR , its listed Belgian subsidiary,
owns its cellular network but has costly contracts with rivals
in order to offer broadband services on top of mobile contracts.
    The planned purchase of 75% of VOO would give Orange control
over the cable network in Belgium's French speaking Wallonia
region and part of the Brussels area. 
    The exclusive talks with VOO's parent company Nethys are a
blow to Orange Belgium's local rival Telenet  TNET.BR , which
acknowledged it had not been selected to enter into talks.
    "A potential acquisition of VOO by Orange Belgium could
reshape the Belgian telco landscape making the former
mobile-only operator a worthy adversary for the two leaders in
the fixed and convergent market," KBC Securities said in a note
to clients.  urn:newsml:reuters.com:*:nL8N2SE1QJ
    The potential Belgian deal comes after Orange's seizing of a
controlling stake in Telekom Romania Communications, Romania's
second-biggest broadband operator, last year.  urn:newsml:reuters.com:*:nL1N2HV0BS
    Orange Belgium said in a statement it would finance the
potential deal by increasing its debt, with the support of its
French parent company.
($1 = 0.8880 euros) 

 (Reporting by Sudip Kar-Gupta and Mathieu Rosemain; 
Editing by Benoit Van Overstraeten and Alexander Smith)
 ((sudip.kargupta@thomsonreuters.com; +33 1 49 49 53 84;))