Orange will establish a new ownership structure and funding vehicle supporting its rollout of fiber connection in rural France.
Orange has entered into an exclusivity agreement with La Banque des Territoires (Caisse des Dépôts), CNP Assurances, and EDF Invest for the sale of a 50% equity interest and co-control of Orange Concessions, which will be France’s leading fibre-to-the-home (FTTH) operator of networks rolled out and operated on behalf of 23, local public authorities representing over 4.5 million built or to-be-built plugs.
This transaction values Orange Concessions at 2.675 billion euros, which highlights the value and the relevance of Orange’s investments in fibre.
The networks operated by Orange Concessions on behalf of local public authorities are open to all operators. Fibre roll-out and maintenance will continue to be performed by Orange who holds an efficient and proven industrial tool. On a local level, the teams working in partnership with local authorities with maintain the same level of mobilisation and commitment.
Commenting on this partnership, Stéphane Richard, Chairman & CEO of Orange stated: “I am delighted that Orange, Europe’s leader in fibre roll-out, is now set to establish this partnership in its domestic market with recognized investors who share our vision of digital communication infrastructure development.
Through this partnership, Orange holds the means to pursue the development of fibre in rural areas, by winning new public initiative networks or by participating in market consolidation. This is a key milestone in the delivery of our Engage 2025 strategic plan.
As to its financial merits, the achieved valuation reveals the value of Orange’s investments in fibre as well as the relevance of such strategic move.”
