Paris-based telecoms giant Orange Group has agreed to sell its Dominican unit Orange Dominicana to private equity investment fund Altice Group for EUR1.1 billion (USD1.435 billion). According to a company press release, the sale permits the continued use of the Orange brand within a defined time-frame. Successful completion of the acquisition is subject to approval from Dominican telecoms watchdog Instituto Dominicano de las Telecomunicaciones (Indotel), and the transaction will be considered by Orange Group’s board of directors during the week commencing 9 December 2013.
As previously reported by TeleGeography’s CommsUpdate, Orange set a deadline of 15 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. While the two pan-Caribbean telcos fell by the wayside, Altice has confirmed that is seeking to finalise an agreement with Grupo Leon Jimenes to become local partners in the Dominican Republic.
TeleGeography notes that the takeover represents 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.