France Telecom (FT) is reportedly close to finalising a deal to sell its 35% stake in Orange Austria (OA) to Hong Kong’s Hutchison 3G.
Austrian paper Die Presse wrote the deal would value OA – owned by FT and private equity firm Mid Europa…
France Telecom (FT) is reportedly close to finalising a deal to sell its 35% stake in Orange Austria (OA) to Hong Kong’s Hutchison 3G.
Austrian paper Die Presse wrote the deal would value OA – owned by FT and private equity firm Mid Europa Partners – at around €1.4bn (US$1.77bn). Hutchison intends to sell on Orange subsidiary Yesss! to avoid potential antitrust issues, and expects to net between €300m and €400m for the no frills brand.
According to the article; which did not reveal its sources, FT hopes to complete the deal within the next few days or weeks.
The sale would form part of FT’s previously-announced long-term strategy to divest slow-growing operations in Europe and focus on emerging markets such as Africa and the Middle East.
The deal would be subject to EC antitrust approval.
Last December, the telecom group sold its stake in Orange Switzerland to UK-based private equity firm Apax Partners for about €1.6bn (US$2.14bn).
Hutchison 3G, part of the Hutchison Whampoa group owned by billionaire Li Ka-shing, is already active in the Austrian market under the brand name ‘3’.
According to Reuters, the deal would make Hutchison 3G the third largest mobile operator in the Austrian market after A1 and T-Mobile respectively. In 2010, the Hutchison group recorded revenue of €578m and a €9m net loss.
Neither Hutchison 3G nor Mid Europa could be reached for comment. Dow Jones reported earlier that Mid Europa refused to answer questions about a potential sale, and Hutchison also refused to comment.
