French giant Orange weighs up 40% stake sale in Mauritius Telecom

AFRICAN BUSINESS AND ECONOMYJune 26, 2024 at 1:19 PM UTC

TLDR

Orange is considering selling its 40% stake in Mauritius Telecom as part of its strategy to focus on core assets and divest non-essential holdings.
Discussions about a possible buyback with Mauritius Telecom’s board have not yet taken place.
Mauritius Telecom, the biggest carrier in the country with 1.3 million subscribers, has government and pension fund stakes, along with ownership by SBM Holdings Ltd. and eligible employees/pensioners.

French telecommunications giant Orange is reportedly exploring the sale of its 40% stake in Mauritius Telecom, according to sources cited by Bloomberg. While Orange has engaged with advisers on the potential sale, discussions with Mauritius Telecom’s board about a possible buyback have not yet occurred.

This potential divestment is part of a broader strategy to refocus on its core assets and shed non-essential holdings. The company is actively pursuing consolidation efforts in Spain and Belgium.

Mauritius Telecom is the biggest carrier in the country, with around 1.3 million subscribers. The Mauritian government and the National Pensions Fund, hold a 40% stake in the telco, while state-owned SBM Holdings Ltd. owns 19%. The remaining 1% was sold to “eligible employees and pensioners” back in 2007.

Points clés à retenir

Orange has held its 40% stake in the Mauritian company since 2000. However, its position in the country, an island off of southern eastern Africa, has become less strategic since its brand was dropped and operations renamed MyT in 2017. The carrier initially acquired its stake in the telco as its predecessor France Telecom in 2000 through Rimcom Ltd., for about $261 million. Orange currently operates in 18 countries across Africa and the Middle East.

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