Digicel Group is bidding for Orange’s Dominican Republic unit. Digicel is one of five bidders interested in Orange Dominicana, which is expected to be sold by the end of the year, Bloomberg reports, citing unnamed sources with knowledge of the matter. According to the same source, the sale is expected to generate more than EUR 1 billion.
An acquisition would give Digicel control of the Dominican Republic’s second-biggest mobile-phone company, with 38 percent of the market, following America Movil’s 51 percent, according to Orange.
Back in July, Orange CEO Stephane Richard said the company was studying the sale of the Dominican Republic unit. Orange spokesman Olivier Emberger said the company is reviewing its Dominican operation. “As is usual practice for such a review, this includes a process in which potential buyers are invited to submit offers,” Emberger said. “The group emphasizes that the sale of its activity in the Dominican Republic is only one of several options available and that no decision has been made in this respect”, he added.
The Dominican unit reported mobile sales of EUR 451 million in 2012, or about 1 percent of Orange’s total revenue. The unit’s sales were up 7.6 percent compared to 2011. At the parent company’s enterprise value of about 1.4 times sales, the Dominican Republic unit would be valued at about EUR 600 million.
