Polygon will not accept Orange Belgium buy-out offer at current price

13 Apr 2021

Private investment firm Polygon has reiterated that it does not plan to accept Orange Group’s buy-out offer for the rest of Orange Belgium and believes other shareholders will similarly resist tendering their shares ‘unless and until a fair offer is made’. Polygon, which owns 5.29% of the Belgian operator’s capital, explained in a press release that although its analysis had been updated to take into account Orange Belgium’s business plan through 2024, it continues to believe that the company is worth more than EUR40 (USD47.6) per share and that the EUR22 per share offer is ‘derisory’.

Having reviewed the independent financial expert report prepared by Degroof Petercam at the request of Orange Belgium’s directors, Polygon argues the analysis underestimates the telco’s growth prospects, overestimates future costs (in particular the acquisition of 5G spectrum) and attributes zero value to its telecom tower portfolio, which it describes as a ‘prized Picasso’ coveted by Orange Group. It believes this ‘key monetisable infrastructure asset’ has an estimated value of over EUR8 per share.

Belgium, Orange Belgium, Orange Group