France Telecom sells all of its assets in Austria

The European telecommunications operator France Telecom completes negotiations to sell 35% stake in the company of Orange Austria Hong Kong holding company Hutchison Whampoa.
telecommunications

Sale of shares in the Austrian mobile operator is part of the France Telecom to reduce its presence in the stagnant European telecommunications market.

Sources close to the negotiations say that finally all the terms of the transaction will be agreed within the next two to three weeks. Pre-selling price of the package is around 1.4 billion euros. At present, the remaining 65% of Orange Austria owned by the private management company Mid Europa Partners, which so far do not provide comments on a possible change of ownership 35% stake in Orange Austria.

At the same time, sources say that Hutchison is the most likely, but not the only bidder. The remaining contenders were not disclosed.

Now on the Austrian mobile telephony market company Hutchinson Whampoa already has some presence through mobile operator 3, part of which belongs to the Hong Kong conglomerate. If the company becomes the owner of Asian companies 3 and Orange Austria, it will become the third largest operator in Austria after the Telekom Austria and T-Mobile Austria. Now Orange Austria on 65% owned by Mid Europa Partners, 35% France Telecom, but the actual management of the company France Telecom carries in agreement with the main investor.

Orange Austria's third largest Austrian mobile phone operator with shares of around 20%. In 2010, revenues were 578 million euro net loss - 9 million euros.

Recall that last year, France Telecom announced a desire to withdraw from the Portuguese mobile market, but at the end of 2011 the company got rid of their assets in Switzerland, sold its Orange Swiss investment fund Apax Partners for 1.6 billion euros. Sources familiar with the situation say that the purchase of Orange Swiss also claimed funds EQT Partners, Providence Equity Partners and French billionaire Xavier Niel, but preference was given to London's Apax.

Now the second largest European telecom operator France Telecom reduces the size of their assets in Europe, where the business is deteriorating economy against the background is no longer so profitable, and the cost of maintaining it remain at a stable level. Instead, the major European telecoms such as Deutsche Telekom, France Telecom and Spanish Telefonica, prefer to move in the direction of the emerging markets of Africa, the Middle East, Asia and other areas.