UBS ups Proximus to 'buy' on TeleSign, improving market structure

Orange Belgium NV

14/01/2022 09:57

** UBS upgrades Proximus  PROX.BR  to "buy" from "neutral",
pointing to the "significant value" of the telecom's TeleSign
unit not yet priced in, and a potential improving market
structure
    ** The SPAC deal the Belgian group signed with New York
blank-cheque company NAAC  NAAC.O  implies TeleSign stake is
worth EUR 1.0 bln ($1.15 bln), the brokerage says  urn:newsml:reuters.com:*:nL8N2T21RT
    ** With the market being focused on fixed/mobile bundles,
Orange Belgium's  OBEL.BR  acquisition of cable operator Voo may
potentially point to an improving market structure, it adds
    ** "The fact that Voo was acquired by an existing player
rather than a new player reduces the risk of a disruptive new
entrant emerging," UBS notes, citing niche B2B operator Citymesh
as likely to acquire new entrant spectrum
    ** It also flags uncertainty on how Telenet  TNET.BR  will
enter Walloon broadband market "but, on a best case, we think
there is growing visibility on an improving market structure"
    * On 18 analysts, three rate Proximus "strong buy/buy",
eight "hold", and seven "strong sell/sell"

($1 = 0.8722 euros)

 (Reporting by Juliette Portala)
 ((juliette.portala@tr.com mailto:juliette.portala@tr.comù))