French incumbent France Telecom has denied reports that it is looking to buy out private equity partner Mid Europa’s 65% stake in mobile operator Orange Austria, reports Reuters.
FT, which owns the other 35% of the company, was responding to a report in…
French incumbent France Telecom has denied reports that it is looking to buy out private equity partner Mid Europa’s 65% stake in mobile operator Orange Austria, reports Reuters.
FT, which owns the other 35% of the company, was responding to a report in Austria’s Wirtschaftsblatt that such a transaction could take place this October after FT’s exclusivity option starts.
In 2007, France Telecom and Mid Europa Partners bought 100% of what was then known as One from its existing shareholders for an enterprise value of E1.4bn.
Under the deal, Mid-Europa took a 65% stake and France Telecom raised its stake from 17.45% to 35%.
The sellers were Germany utility group E.On (51%), Telenor (17.45%) and TDC (15%). Goldman Sachs advised E.On on the sale and Lazard advised France Telecom.
Wirtschaftsblatt valued Orange Austria at E740m-E1.1bn, which would make Mid Europa’s 65% stake worth E481m-E715m.
Orange Austria is the country’s number three operator, behind Telekom Austria’s mobile division and T-Mobile, but ahead of Hutch’s 3.
