France to Sell Part of Orange Stake in €1.1 Billion Share Sale
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France Set to Reduce Orange Stake in €1.1 Billion Secondary Share Sale
By Gianluca Lo Nostro and Mathieu Rosemain
Details of the French Government’s Orange Share Sale
Overview of the Transaction
July 30 (Reuters) – France is set to sell a small part of its stake in Orange, the country’s biggest telecoms operator, in a share sale launched on Thursday, two people familiar with the matter said, with one saying it could raise €1.1 billion ($1.27 billion) from the deal.
Stakeholders Involved
The French state shareholding agency APE and French state investment bank Bpifrance, which together are the company’s largest shareholder, are planning to sell 66.5 million shares via a secondary share sale, reducing the government’s combined stake to 20.4% from roughly 23%, one of the people said, speaking on condition of anonymity because the matter was private.
Bookbuilding Process and Pricing
A bookrunner term sheet seen by Reuters showed an accelerated bookbuild, with orders priced below €16.57 per share risking missing out. The term sheet did not disclose the seller. The deal is expected on Thursday night, it added.
Reactions and Comments
Orange and APE declined to comment. Bpifrance did not immediately reply to a request for comment.
Implications of the Sale
French Law and Voting Rights
France can reduce its Orange stake because French law grants double voting rights to shareholders who have held registered shares for at least two years, one of the sources said.
Maintaining Influence
Through the registration of its shares, France’s voting power exceeds its economic stake and would remain close to the 30% level that carries significant influence under French takeover rules.
As a result, it can sell shares while retaining a strong say over the company, the source said. Discussions between Orange and the government on the issue have been under way for about two years, the source added.
Additional Information
($1 = 0.8682 euros)
(Reporting by Gianluca Lo Nostro and Mathieu Rosemain. Editing by Anousha Sakoui and Rod Nickel)
