To support its fibre development in rural areas and underline the value of its infrastructure, Orange creates Orange Concessi...
22 Janeiro 2021 - 6:28PM
To support its fibre development in rural areas and underline the
value of its infrastructure, Orange creates Orange Concessions
through a partnership with long term investors
Press releaseParis, 22 January 2021
To support its fibre development in rural areas and underline
the value of its infrastructure, Orange creates Orange Concessions
through a partnership with long term investors
- With over 4.5 million FTTH plugs, Orange Concessions will be
the leading fibre network operator in rural France
- Following a competitive process including leading international
investors, the best offer to acquire a 50% co-controlling equity
interest of Orange Concessions was from La Banque des Territoires
(Caisse des Dépôts), CNP Assurances (« CNP ») and EDF Invest
consortium
- This transaction values Orange Concessions at 2.675 billion
euros
- In line with its Engage 2025 strategic plan, this partnership
gives Orange the flexibility to reinforce its development in fibre,
notably in rural areas
Orange has entered into an exclusivity agreement with La Banque
des Territoires (Caisse des Dépôts), CNP Assurances (« CNP ») and
EDF Invest for the sale of a 50% equity interest and co-control of
Orange Concessions.
With 23 public initiative networks (PIN) representing over 4.5
million built or to-be-built plugs, Orange Concessions will be
France’s leading fibre-to-the-home (FTTH) operator of networks
rolled out and operated on behalf of local public authorities.
The partnership between Orange, France’s and Europe’s leader in
fibre roll-out, and long-term and renowned investors in both
infrastructure and local development will enable Orange Concessions
to fully seize growth opportunities. This transaction will allow
Orange to support its ambitions in public initiative networks while
sharing required investment.
The networks operated by Orange Concessions on behalf of local
public authorities are open to all operators. Fibre roll-out and
maintenance will continue to be performed by Orange who holds an
efficient and proven industrial tool. On a local level, the teams
working in partnership with local authorities with maintain the
same level of mobilisation and commitment.
This transaction values Orange Concessions at 2.675 billion
euros, which highlights the value and the relevance of Orange’s
investments in fibre. Orange will hold a call option that will
enable it to take control and consolidate Orange Concessions in the
future.
The transaction is expected to close by end 2021.
Commenting on this partnership, Stéphane Richard, Chairman &
CEO of Orange stated: “I am delighted that Orange, Europe’s leader
in fibre roll-out, is now set to establish this partnership in its
domestic market with recognized investors who share our vision of
digital communication infrastructure development.
Through this partnership, Orange holds the means to pursue the
development of fibre in rural areas, by winning new public
initiative networks or by participating in market consolidation.
This is a key milestone in the delivery of our Engage 2025
strategic plan.
As to its financial merits, the achieved valuation reveals the
value of Orange’s investments in fibre as well as the relevance of
such strategic move.”
About Orange
Orange is one of the world’s leading telecommunications
operators with sales of 42 billion euros in 2019 and 143,000
employees worldwide at 30 September 2020, including 83,000
employees in France. The Group has a total customer base of 257
million customers worldwide at 30 September 2020, including 212
million mobile customers and 21million fixed broadband customers.
The Group is present in 26 countries. Orange is also a leading
provider of global IT and telecommunication services to
multinational companies, under the brand Orange Business Services.
In December 2019, the Group presented its new "Engage 2025"
strategic plan, which, guided by social and environmental
accountability, aims to reinvent its operator model. While
accelerating in growth areas and placing data and AI at the heart
of its innovation model, the Group will be an attractive and
responsible employer, adapted to emerging professions.
Orange is listed on Euronext Paris (symbol ORA) and on the New
York Stock Exchange (symbol ORAN).For more information on the
internet and on your mobile: www.orange.com,
www.orange-business.com or to follow us on Twitter:
@orangegrouppr.Orange and any other Orange product or service names
included in this material are trademarks of Orange or Orange Brand
Services Limited.
Press contacts: +33 1 44 44 93 93Tom Wright;
tom.wright@orange.com; 06 78 91 35 11Olivier Emberger;
olivier.emberger@orange.com
- PR_Orange_Concessions_EN_220121_vdef_bis