The deal will cut the French group’s debt, while increasing its financial flexibility.
Analysts told Reuters today that the divestment was welcome, because the subsidiary was not seen as core for Orange and the sale provided reassurance on the group’s dividend commitment.
Orange has been looking to sell off its non-core subsidiaries, following regulator-imposed price cuts in France and increasing competition, which has affected sales and earnings.
The company said the deal represented “a significant step forward in the optimisation of Orange’s assets portfolio”.
The deal is still subject to regulatory approval.
