France’s largest telco in terms of subscribers Orange Group has reportedly been considering the sale of its wholly-owned subsidiary Orange Dominicana, in a deal that could raise up to EUR900 million (USD1.2 billion), Reuters reports. According to people familiar with the matter, Orange has been mulling its exit from non-core markets in an attempt to moderate its debt, and is expected to appoint a financial adviser to oversee the potential sale. Although Orange Group declined to comment on the Dominican Republic exit, a spokesperson for the company affirmed that the group regularly conducted assessments of its subsidiaries to ‘analyse their performance, growth potential and coherence with the group’s strategy.’
According to TeleGeography’s GlobalComms Database, Orange Dominicana generated revenues of EUR451 million (USD584.4 million) in 2012, up by 2.5% from EUR440 million in 2011, mainly attributed to increase in data usage. By the end of Q1 2013, the company claimed 37% of the market, equivalent to 3.3 million users, although still trailing behind market leader Claro Dominicana, a subsidiary of America Movil, with 54.4% of the subscribers. According to local reports, in February 2013 Orange announced plans to invest USD100 million in the Dominican Republic throughout the year, with the money being earmarked for improvements to business services and infrastructure upgrades.