The news follows a competitive selection process and is based on an enterprise value of €1.8 billion for 100% of the capital, putting the 75% share at approximately €1.35 billion.
The enterprise value of €1.8 billion for 100% of the capital relates to an earnings before interest, taxes, depreciation, and amortization (EBITDA) multiple before synergies of 9.5x.
VOO is a Belgian telecoms operator that owns the cable network in the Walloon region and part of the Brussels region. Its portfolio is comprised of fixed and mobile telephony, broadband Internet and television services.
Once completed, the acquisition of VOO will enable Orange Belgium to operate a high-speed network in Wallonia and part of Brussels, supporting the deployment of its convergent strategy at a national level.
The combination of the ambitious investment plan with the competences of both Orange Belgium and VOO, will strengthen the quality of VOO's network, as well as serving customers and competition of the Walloon and Brussels regions.
In addition, Orange's industrial project as well as the complementary nature of its assets, teams and working culture of the two companies creates an attractive proposition for employees of both businesses.
Orange Belgium is to finance this transaction by increasing its debt, with the support of Orange SA.
In related news, October saw Orange Belgium launch its Orange 5G Lab in Antwerp where it will test and develop 5G standalone (SA) technology.
It is Orange's eighth lab – and Orange Belgium's first – with other facilities located across Europe, each with a radio network directly connected to the Orange 5G Core system. The Antwerp lab will showcase a robotic arm, demonstrating human-robot co-working enabled by 5G; autonomous driving on rails; and industrial 5G use cases.
