Orange Plans to Launch Takeover Bid for Belgian Subsidiary
December 03 2020 - 2:01AM
Dow Jones News
By Pietro Lombardi
Orange said late Wednesday that it plans to launch a takeover
bid for its Belgian subsidiary Orange Belgium SA that would value
the business at roughly 1.3 billion euros ($1.58 billion).
The French telecommunications company, which according to
FactSet holds almost 53% in Orange Belgium, wants to launch a
conditional offer of EUR22 a share in cash for all the shares it
doesn't own already. This is a premium of almost 36% compared with
Orange Belgium's closing price on Wednesday.
"This project is part of the continued efforts of the Orange
Group to adapt the capital structure of its subsidiaries to their
needs," it said.
A delisting of Orange Belgium may be considered, depending on
the conditions. If Orange reaches a stake of at least 90% and
voting rights of 95% after the offer, it would then launch a
squeeze-out.
The launch of the offer, its timing and conditions will depend
on some factors, including market conditions and the developments
in financial markets, Orange said.
Should an offer be made, there would be no minimum thresholds
and a material adverse change clause would be included.
Orange Belgium said late Wednesday that it took note of the
news.
"The Board of Directors of Orange Belgium will meet as soon as
possible to take note and examine the content of the offer in
accordance with the legal provisions," it said.
Write to Pietro Lombardi at pietro.lombardi@wsj.com;
@pietrolombard10
(END) Dow Jones Newswires
December 03, 2020 01:46 ET (06:46 GMT)
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