Orange Belgium has reached a final agreement to acquire a majority stake in cable operator Voo, buying a 75 percent stake minus one share, at a valuation of EUR 1.8 billion for 100 percent of the company’s shares. The deal will give Orange Belgium its own fixed network in Wallonia and part of Brussels. There will also be a plan to upgrade the company’s cable network and to further roll out fibre networks.
Publicly owned Nethys will retain a minority stake in Voo plus governance rights, with the option to sell the rest of its shares later. Orange entered exclusive talks to buy Voo in November, beating off Telenet and several private equity groups.
The transaction is expected to generate important synergies, mainly related to the transfer of Voo’s MVNO business to Orange Belgium’s network, the company expects. The enterprise value of the price paid by Orange corresponds to an EBITDA multiple of 9.5x. After synergies, that multiple will go to 6.5x. Orange Belgium intends to pay for the acquisition through an intra-group loan.
The transaction is expected to close after fulfilling all requirements, including approval by the European Commission, expected in 2022. The companies will operate independently until the approvals are obtained. The board of Nethys's parent Enodia approved the sale earlier this month.
