Orange to Sell 50% of Newly-Created Orange Concessions

By Olivia Bugault

Orange said late Friday that it has created Orange Concessions, a company that gathers its fibre assets in rural areas in France, and that three investors have acquired part of the new entity.

The French telecommunications company said it has entered into an exclusive agreement with insurer CNP Assurances, EDF's investment arm EDF Invest, and La Banque des Territoires--part of public financial institution Caisse des Depots--for the sale of a 50% co-controlling equity interest in Orange Concessions.

The transaction should close by the end of this year and values Orange Concessions at 2.68 billion euros ($3.26 billion), the company said. Orange will hold a call option, meaning it could take control and consolidate Orange Concessions in the future, it said.

"With 23 public initiative networks representing over 4.5 million built or to-be-built plugs, Orange Concessions will be France's leading fibre-to-the-home operator of networks rolled out and operated on behalf of local public authorities," Orange said.

Write to Olivia Bugault at olivia.bugault@wsj.com

(END) Dow Jones Newswires

January 25, 2021 02:03 ET (07:03 GMT)

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