Orange Said to Sell Dominican Republic Unit to Altice

Orange SA (ORA), France’s biggest phone company, is nearing an agreement to sell its Dominican Republic unit to Altice, a cable and telecommunications investor, according to three people familiar with the matter.

An accord could be announced as soon as this week, said the people, who asked not to be identified because the talks are private. Orange Chief Executive Officer Stephane Richard said on Nov. 22 it’s near selling the unit for “a price well above 1 billion euros” ($1.35 billion), without disclosing the buyer.

Orange put its Dominican Republic business up for sale this year and has said it attracted multiple bids. Altice, which was founded by telecommunications entrepreneur Patrick Drahi and is based in Luxembourg, last month agreed to purchase Tricom SA and Global Interlink Ltd. to expand its television, Internet and telephone packages — known as triple play — and wireless business in the Caribbean.

European telecommunications companies are disposing of peripheral assets as they increase investments in high-speed mobile networks in their largest markets and cut debt. Last week, Deutsche Telekom AG agreed to sell a 70 percent stake in its Scout24 Holding digital-classifieds business.

A deal has not been finalized and details are still being negotiated, the people said.

A press official at Paris-based Orange declined to comment. A representative for Altice couldn’t be immediately reached by phone or e-mail outside of regular business hours.

Altice Investments

Altice owns and operates cable, mobile, Internet and data-center companies in places including Israel, Belgium, Indian Ocean, Portugal and Switzerland, according to its website. It’s the biggest shareholder in France’s largest cable operator Numericable SAS, which held an initial public offering earlier this month.

Sales and earnings at Orange are falling as competition with rivals including discounter Iliad SA (ILD) weighs on prices. The company, which has diversified into countries from Poland to Egypt, is also trying to keep a lid on debt.

The former French phone monopoly’s stock has rebounded since reaching a decade low in early July, partly reflecting Richard’s efforts to reduce expenses.

Source:Bloomberg