Orange telecom company mulls sale of Dominican Republic business
Santo Domingo.- The telecom provider Orange of France (ORAN.PA), is considering the sale of its Dominican Republic business in a deal that could fetch up to US$1.2 billion, as it exits non-core markets to pay down debt, seven people with knowledge of the situation told Reuters in a report from London on Tuesday.
“Orange is in talks with several banks and is expected to appoint a financial adviser in coming days to help on the sale, said the sources who asked not to be named because the talks are private,” the cable service said.
One of the country’s top telecoms that include Claro, Viva and Tricom, Orange Dominicana provides mobile telephone and Internet services to retail and business customers, Reuters said quoting sources. Orange “could attract interest from players including Swedish-based mobile operator Millicom (MICsdb.ST), Jamaica’s Digicel DGCGP.UL, Cable & Wireless Communications (CWC.L) as well as private equity firms in the United States and Latin America.”
It said Orange holds 38.4 percent of the wireless market in the Dominican Republic, against 51.2 percent for America Movil’s (AMXL.MX) Claro, 7.4 percent for Viva and 3 percent for Tricom.
“With America Movil controlling over half the market, the regulators would never allow them to buy Orange’s operation. If either of the other two operators (or Tricom) can afford it, strategically it would make sense for one of them to buy Orange,” Reuters said, quoting MorningStar analyst Allan Nichols.
It said a spokesman for Orange declined comment on the Dominican Republic business.
Category: DR News |