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Hutchison ‘nears Orange Austria takeover’
17 January 2012
Group likely to merge 3 Austria if it achieves $1.4bn deal to buy Orange Austria from France Telecom and private equity
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Hutchison
Austria
Three
Orange
France Telecom
private equity
Mid-Europa Partners
Hutchison Whampoa is close to acquiring Orange Austria, in a deal that could be valued at €1.4 billion inclusive of debt. According to Bloomberg, an agreement for the sale of Orange Austria, which is jointly owned by France Telecom and UK-based buyout entity Mid-Europa Partners, could be finalised within weeks. France Telecom is likely to receive €100 million from its 35% interest in the company.
Hutchison already owns 3 Austria and would seek to merge the country’s third and fourth largest operators.
The Orange brand has been active in Austria only since 2007, when Telenor and TDC, along with German power company E.on, sold their interests in the former One. France Telecom doubled its stake to 35% and Mid-Europa Partners — a company with extensive telecoms interests in central and eastern Europe — bought the other 65%.
Austria is one of the most competitive markets in Europe and Orange has been seen to exit countries where the company does not have market power. GTB
Further reading from Global Telecoms Business:
Hutchison to launch LTE in Austria 17 Nov 2011
Investor buys 20% of Telekom Austria 24 Oct 2011
Telekom Austria facing state sale 07 Sep 2011
End of private equity in mobile as focus shifts to broadband 30 Jun 2010
Orange gets its first presence in Austria after private equity ... 21 Jun 2007