Communiqué - Orange Romania has signed a deal to acquire a 54% controlling stake in fixed operator Telekom Romania Communica...
November 09 2020 - 2:01AM
Communiqué - Orange Romania has signed a deal to acquire a 54%
controlling stake in fixed operator Telekom Romania Communications
Press ReleaseParis, 9 November 2020
Orange Romania has signed a deal to acquire a 54%
controlling stake in fixed operator Telekom Romania
Communications
- Telekom Romania Communications is one of Romania’s leading
fixed telecom operators currently 54% owned by OTE and 46% by the
Romanian State.
- The transaction includes the 54% stake owned by OTE and its
fixed-mobile convergent subscribers.
- Total Enterprise Value: €497m, based on 100% of Telekom Romania
Communications and the convergent customer base. This corresponds
to a total purchase price of €268m for Orange, on a debt-free,
cash-free basis and subject to customary adjustments at closing of
the transaction.
- This transaction represents a major step forward in Orange’s
ambitions to become the preferred choice of customers for
convergent services in the Romanian market and will increase
investment and competition in the Romanian telecommunications
sector to the benefit of consumers and society at large.
Orange Romania announces that it signed a deal to acquire a
controlling 54% stake in Telekom Romania Communications (“TKR”), in
a transaction that will significantly accelerate Orange’s strategy
to become the preferred choice of customers for convergent services
in the Romanian market. Orange will pay a total of €268m, on a
debt-free, cash-free basis and subject to customary adjustments at
closing, corresponding to a total enterprise value of €497m, based
on 100% of Telekom Romania Communications and the convergent
customer base.
TKR is Romania’s second largest player in fixed telecoms with
revenues of €622m reported in 2019. Through its owned network
infrastructure, TKR provides fixed voice, broadband and pay-tv
services to 5 million customers and its approximately 90,000 km
fibre network connects some 3 million households. It also provides
convergent services to approximately 881 thousand fixed-mobile
convergent subscribers, as at 30 June 2020 through an MVNO contract
with Telekom Romania Mobile. These customers will migrate to Orange
Romania’s network, following the completion of the transaction.
Orange Romania reported €1.1Bn revenues in 2019 and is the
number one mobile operator in Romania. Thanks to this acquisition
Orange will accelerate its convergent operator strategy which, when
combined with TKR’s fixed network, will create a fully
infrastructure-based convergent operator across B2C, B2B and ICT
markets.The future combined entity will aim to become the preferred
choice of customers for convergent services in the Romanian market
both for consumer and business segments. This transaction will also
generate significant synergies deriving mainly from the
cross-selling of services to existing customers, as well as the
optimisation of the network including economies of scale and
scope.
The closing of the transaction is subject to customary condition
precedents, notably antitrust clearance by the European Commission
and other relevant authorities and is expected to be completed
within the second half of 2021. Until this approval and the
completion of the transaction is obtained, both companies will
continue to operate independently.
Mari-Noëlle Jégo-Laveissière, Deputy CEO, in charge of Orange in
Europe, commented: “This acquisition is an important step to
accelerate our convergence strategy in Europe. Romania is a key
market for Orange and a great success story. This transaction
confirms our long term commitment to the Romanian market. We are
looking forward to contribute to the development of the telecoms
sector through sustained investments in top performing network
infrastructures and innovative services.”
Liudmila Climoc, CEO, Orange Romania, commented: “This is a
significant milestone for the Romanian telecom market that will
enhance its attractiveness both in terms of converged telecoms
services and high quality infrastructure, while increasing
competition. It will provide the opportunity to scale up innovative
convergent services, bringing broader benefits and wider choices to
the customers and also to the country’s digital economy sustainable
development. Orange Romania’s and Telekom Romania Communications’
network complementarity will allow us to bring together not only
customers and teams, but also the best of expertise in terms of
quality of service and future-proof mobile and fixed networks
infrastructure.”
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 256
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 contactsTom Wright; +33 6 78 91 35 11;
tom.wright@orange.comNicole Clarke; nicole.clarke@orange.com
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