Polygon claims Orange Belgium buyout price still too low

Investment company Polygon Global Partners has announced it has hired investment bank Ondra as its financial advisor in relation to Orange Group’s announcement (as published by the Belgian Financial Services and Markets Authority on 21 January) of its intention to launch a voluntary conditional public takeover bid for all the shares of Orange Belgium it does not yet own, as it believes Orange’s offer is too low. In a statement, Polygon said it ‘remains supportive of the strategy pursued by Orange Belgium and continues to believe that a price of EUR22 (USD26.6) per share would substantially undervalue the company on a standalone basis’. Specifically, Polygon points to Orange Group’s recent monetization of its French rural fibre networks as well as what Polygon believes is the unaccounted-for value in Orange Belgium owned towers. Ondra will carry out a valuation of the Belgian operator, in which Polygon’s European Equity Opportunity Master Fund and certain client accounts collectively hold 5.29% of the share capital.