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Orange (ORAN) Buys Stake in VOO SA to Boost Network Expansion

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Orange S.A.’s subsidiary, Orange Belgium, acquired a controlling stake in VOO SA, aligning with its national convergent strategy. With this deal, Orange Belgium now holds a 75% stake minus one share in VOO SA, while the remaining 25% plus one share is retained by Nethys.

The acquisition was previously announced in December 2021. The acquisition enables Orange Belgium to strengthen its position in Wallonia and Brussels by deploying a high-speed network infrastructure.

The buyout is expected to have long-term benefits for VOO's network, enhancing its quality and spurring investment and competition in the telecommunications sector. This will enable customers in Wallonia and the Brussels region to access superior network services. The transaction values VOO at an enterprise value of €1.8 billion for the entire capital.

Orange Price and Consensus

Orange Price and Consensus

Orange price-consensus-chart | Orange Quote

This acquisition strengthens the longstanding relationship between VOO and Orange Belgium and paves the way for Orange Belgium to enhance its investment plan. Orange aims to bolster BeTV, a cable television platform based in Belgium, and improve VOO's call center. In addition, Orange Belgium plans to modernize the cable infrastructure and expand fiber optic rollouts with multi-gigabit connectivity.

By combining the expertise of Orange Belgium and VOO, this acquisition will revitalize the network infrastructure in Belgium and solidify Orange Belgium's position as a leader in convergence in Europe.

In October 2021, Orange Belgium completed the acquisition of a majority stake in Telekom Romania Communications for a total purchase price of €268 million on a debt-free and cash-free basis. The transaction for a 54% controlling stake in one of Romania’s leading fixed telecom operators is aimed at realizing Orange’s convergence goals in Europe, as it intends to scale up operations in the continent to better serve customers.

At present, ORAN carries a Zacks Rank #2 (Buy). The stock has lost 3.9% in the past year compared with the sub-industry’s decline of 10.7%.

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