Orange has entered into an exclusivity agreement with a group of investors for the sale of a 50 percent stake and co-control of Orange Concessions, a new venture that will operate all the open access fibre networks that the company has been deploying in French rural areas. The deal, expected to close by end-2021, values the venture at EUR 2.675 billion. It includes a call option that will enable Orange to take control and consolidate Orange Concessions in the future.
Banque des Territoires, part of French state-owned bank CDC (Caisse des Depots), CNP Assurances and EDF Invest make up the consortium that has made the best offer to acquire the stake. This follows a competitive process which reportedly started in October 2020 and saw the participation of leading international investors.
The Orange Concessions project was first unveiled by the telecom group in December 2019 as part of its 'Engage 2025' five-year strategic plan. The venture will operate FTTH infrastructure currently including 23 open access networks across rural France. When completed, the footprint will pass 4.5 million premises, of which the majority are yet to be covered.
Orange has been deploying the infrastructure under public initiative contracts with French local authorities. With this latest deal, it will be able to share the required investment to fulfil its deployment commitments, while remaining responsible for FTTH roll-outs and maintenance of the networks.
