France Telecom announced the launch of the process to sell its Swiss unit following the review of its European asset portfolio.
In a release, CEO Stephan Richard said: “As previously announced, we have reviewed our European operations and are…
France Telecom announced the launch of the process to sell its Swiss unit following the review of its European asset portfolio.
In a release, CEO Stephan Richard said: “As previously announced, we have reviewed our European operations and are launching today the sale process of our consumer business in Switzerland.”
Lazard and Perella Weinberg Partners are understood to be advising France Telecom on the divestment.
A spokesperson at France Telecom said: “Our ambition is to be number one or number two in every country and to be a convergent telecoms operator to play an industrial role. In Switzerland the business is very small and we think the regulatory environment does not leave us enough room for a strong development plan. Swisscom has a very strong position where it is difficult to compete.
“However, we’re very happy with our Belgian business and have no plan to sell it. But as said before, ultimately we want to sell minority shareholdings.”
In May, the French incumbent unveiled its strategic plans for 2011 to 2015, confirming its intention to sell minority stakes in assets in which it does not exercise an operational role.
France Telecom holds 35 per cent of Orange Austria and 20 per cent of Portugal’s Sonaecom, which owns mobile operator Optimus. Private equity firm Mid Europa Partners owns 65 per cent of Orange Austria, while Portuguese multi-sector retailer Sonae SGPS owns 53.17 per cent in Sonaecom.
The minority investment in Meditel in Morocco and Korek in Iraq made over the last year will not be considered for divestment.
The sale of the Swiss asset was announced with FT’s first-half results. The company said it posted E22.569bn revenues in the first six months of the year led by a 23% rise in mobile services in Africa and the Middle East. It recorded an EBITDA of E7.613bn. Debt stood at E30.285bn at the end of June. The company has recurrently said it wanted to focus its attention on Africa and the Middle East.
