- French telco Orange is considering selling its 40% stake in Mauritius Telecom, as the assets are no longer deemed core.
- Per Bloomberg, Orange has already drafted a potential exit plan with advisers but has yet to formally discuss a share buyback with Mauritius Telecom.
- While a decision could be made in November 2024, deliberations are still in the early stages, and Orange may choose to retain the assets for a longer period.
Despite holding a minority stake, Orange's influence in Mauritius Telecom has diminished as the shares have become less strategic. This shift followed the expiration of a ten-year agreement to use the Orange brand name, from September 2007 to September 2017. Subsequently, Mauritius Telecom rebranded itself as MyT.
At the time, commenting on the rebranding, Sherry Singh, CEO of Mauritius Telecom said there is still a business relationship in place with Orange as it holds a 40% stake in the company.
Orange, formerly known as France Telecom, is a French telecommunications company. The company's shares in Mauritius Telecom were purchased by its predecessor France Telecom in 2000 through Rimcom Ltd., for up to $261 million.
Other shareholders in the company are state-owned entities; Mauritian government, National Pensions Fund, and state-owned SBM Holdings Ltd.
Orange is present in Africa and the Middle East, and Orange MEA is the Group’s main growth region. According to Orange, its Business was certified in Egypt, Mauritius and South Africa, and its affiliates include Orange Egypt. The operator noted that its major service centres in Cairo and Mauritius provide 24/7 assistance to its multinational customers in 15 languages.
Selling its shares in Mauritius Telecom does not necessarily mean Orange is exiting Mauritius completely. The operator's business remains certified in Mauritius, and they also maintain a centre there, indicating their continued presence in the country despite the potential divestment.
In April 2024, Mauritius Telecom announced plans for a new subsea cable, T4, to link Africa, the Indian Ocean islands, and Asia, enhancing regional coverage. The new line, currently under discussion with several operators including Orange SA, will replace the South Africa Far East (SAFE) submarine cable.
In other news, a consortium led by Thales, a French IT company, secured a 10-year deal to upgrade Mauritius’ national ID system with digital identity technology. This digital ID wallet, designed to be interoperable based on ISO standards, will be the first of its kind in Africa.