Paris-based telecoms giant Orange Group is reportedly close to reaching an agreement with Luxembourg-based private equity firm Altice Group for the sale of its Dominican unit Orange Dominicana, Bloomberg reports, citing sources familiar with the matter. According to the article, Orange CEO Stephane Richard has suggested that the company is closing in on a deal to divest the unit at ‘a price well above EUR1 billion (USD1.35 billion)’, although the executive stopped short of revealing the identity of the potential buyer.
As previously reported by TeleGeography’s CommsUpdate, Orange set a deadline of mid-November 2013 for interested parties to submit bids for Orange Dominicana, with Digicel Group, Cable & Wireless Communications (CWC) and local conglomerate Grupo Leon Jimenes all named as potential bidders.
If the reports prove accurate, the takeover will represent Altice Group’s second deal in the country in the space of one month; earlier in November Altice agreed to acquire integrated telecoms services provider Tricom from its current owner Hispaniola Telecom. Under the terms set out by the deal, Altice will acquire 88% of Tricom, while Hispaniola Telecom will retain the remaining 12% stake. Altice plans to use Tricom’s quadruple-play platform to continue its TV and broadband development plans and expand Tricom’s mobile services. The deal is subject to regulatory approval from Dominican telecoms watchdog Instituto Dominicano de las Telecomunicaciones (Indotel).