Orange to deploy the funds received following the recent tax dispute resolution to accelerate its development and commitments...
December 02 2020 - 4:11PM
Orange to deploy the funds received following the recent tax
dispute resolution to accelerate its development and commitments,
while also proposing to benefit its employees and shareholders
Press releaseParis, 2 December 2020
Orange to deploy the funds received following the recent tax
dispute resolution to accelerate its development and commitments,
while also proposing to benefit its employees and shareholders
Following the French Council of State's (Conseil d’état)
favourable decision on 13 November concerning a long-standing tax
dispute, the Orange group confirms that it has received all of the
2.2 billion euros corresponding to sums paid in 2013, as well as
the related rights and interest. As announced on 13 November, the
Group’s priority is to allocate these funds in a fair and balanced
manner between the company’s development, its employees and its
shareholders, with an enhanced social commitment.
In this respect, the Orange Board of Directors, which met on 2
December, took note of this decision and looked favourably on the
proposed project, in particular the following aspects:
- Orange will increase the pace of its main areas of development
to strengthen its value creation:
- Using nearly a quarter of the amount received, the Group will
strengthen its leadership in networks, both in France and
internationally, for the benefit of its customers, as well as
projects related to the ecological transition.
- The Group will earmark another quarter of the amount received
to support the Group’s operational transformation, in particular
with the aim of improving its agility and performance.
- In addition, Orange is announcing a conditional voluntary
public takeover offer for all the shares of Orange Belgium that it
does not yet own. This project is part of the continued efforts of
the Orange Group to adapt the capital structure of its subsidiaries
to their needs. This proposal, which is only the expression of an
intention and does not constitute a formal notification of a
voluntary public takeover bid, will be submitted to the FSMA (the
Belgian Financial Services and Markets Authority) for
approval.
- Based on the developments in France’s “Pacte Law” of May 2019,
the Board of Directors also examined the broad lines of an employee
share scheme in France and internationally for a total volume of
around 30 million shares, with the objective that employee
shareholding reaches 10% in the future. Various terms for this
proposal are being examined and will be submitted to the Board of
Directors for approval with the aim of implementing the scheme in
2021.
- The Board of Directors also favourably considered the principle
of an extraordinary dividend for shareholders of 0.20 euros per
share. The final decision will be made at the Board of Directors
meeting held to approve the 2020 accounts and will then be
submitted to the Shareholders’ Meeting for approval.
- A portion of the funds will be allocated to our social
commitments focussed on achieving carbon neutrality by 2040 and
digital equality. Several projects will be fast-tracked, such as
the deployment of Orange Digital Centers and the financing of
carbon sinks. The Orange Foundation’s budget for 2021 will be
bolstered with by an exceptional grant that will significantly
strengthen the support it provides to the most vulnerable
population groups.
- Any remaining balance will reduce the company’s net debt.
About Orange
Orange is one of the world’s leading
telecommunications carriers with a turnover of €42 billion in 2019
and 143,000 employees as at 30 September 2020, of which 83,000 are
in France. The Group has a total customer base of 256 million
customers worldwide at 30 September 2020, including 212 million
mobile customers and 21 million 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).
To find out more (online and via your mobile device), go to:
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:
Tom Wright: tom.wright@orange.com; 06 78 91 35 11
Olivier Emberger: olivier.emberger@orange.com; 01 44 44 93
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