Orange Belgium announced it has been selected to enter exclusive negotiations with Nethys on the acquisition of cable operator Voo. Under the proposed deal, Orange would acquire 75 percent of Voo minus one share, at a valuation of EUR 1.8 billion for 100 percent of the company's shares.
The news sees Orange fight off rival operator Telenet and several private equity groups interested in Voo. The cable company was put back up for sale earlier this year after Orange successfully opposed an earlier sale agreement with Providence, which was struck down in court due to irregularities under Voo's previous management.
If successful, the takeover would give Orange Belgium its first fixed network, covering most of the south of Belgium in Wallonia and parts of the Brussels region. Orange already offers services on the Voo network under regulated wholesale access. Orange said an "ambitious" investment plan would further strengthen Voo's network and services for customers, while improving competition on the regional markets.
"Orange's industrial project, the complementary nature of its assets and teams and the social culture of the two companies offers an attractive outlook for employees of both Voo and Orange Belgium," Orange said in a statement.
The proposed valuation is equal to 9.5 times Voo's annual EBITDA, before any synergies. Orange Belgium said it would finance the deal through an increase in debt, with the support of its parent company Orange SA.
Other bidders
Telenet issued a short statement confirming it had been interested in the takeover. The company had hoped to create a national cable network across Belgium with the acquisition of Voo, which already uses the Telenet mobile network for its MVNO. Telenet said it regretted the decision by Nethys "as an acquisition by Telenet would have brought benefits to the overall competitive landscape in Belgium, the Walloon and Brussels regions and for Voo as a company".
Nethys said there were 49 candidates for the Voo takeover, and confidentiality agreements were signed with 27 potential bidders. Five were asked to make binding offers, and detailed talks were held with both Telenet and Orange.
The company said it was interested in the financial, industrial and investment conditions of each bidder, as well as the need to maintain employment at Voo and give Nethys a say in future strategic decisions. Orange Belgium, with the support of its parent company, offered high-quality proposals on all these terms, Nethys said. Pending approval from its public holding company Enodia, the company aims to sign a final sale agreement before year-end.
