The Swiss telecommunications space is set for a shakeup in 2012 with France Telecom-Orange’s (FT’s) €1.6bn sale of its local subsidiary to Apax Partners amid rumours the latter is contemplating a partnership with a rival mobile operator.
The…
The Swiss telecommunications space is set for a shakeup in 2012 with France Telecom-Orange’s (FT’s) €1.6bn sale of its local subsidiary to Apax Partners amid rumours the latter is contemplating a partnership with a rival mobile operator.
The proposed sale of Orange Switzerland to the UK-based private equity firm, announced in late December, will be submitted to the FT board for approval next week and is also subject to the approval of the Swiss antitrust authorities.
In a recent statement, FT said the deal, which values Orange Switzerland at six-and-a-half times 2011 EBITDA, forms part of its long-term strategy. The company earlier announced it plans to shed slow-growing operations in Europe and expand its presence in emerging markets such as Africa and the Middle East.
Meanwhile, Dow Jones Newswires reported that Apax, which participated in more than 20 deals in 2011, is considering a tie-up with CVC Capital Partners-backed Sunrise Communications.
The Swiss authorities had rejected FT’s earlier attempt to merge Orange Switzerland and Sunrise in 2010.
The mobile operators had hoped to join forces to take on the incumbent Swisscom, but the Swiss watchdog rejected their proposal for fear it would reduce competition in the country of about eight million and keep prices high.
FT also received offers from private equity groups EQT, Providence and Doughty Hanson and French telecommunications company Iliad for Orange Switzerland.
FT took financial advice on the auction from Perella Weinberg and Lazard, while Apax consulted banks Nomura and Rothschild.
