Orange Exiting MT, 40 % Stake: Will Mauritius Telecom Bite?

Orange, a French telecommunications company, is considering divesting its 40% stake in Mauritius Telecom, a move that could potentially happen as early as November 2024.

The decision to sell came after Orange deemed the assets non-core, given that its influence has diminished following the expiration of a ten-year agreement to use the Orange brand name in 2017.

The company rebranded itself as MyT, while Orange retains a minority stake.

According to Techpoint Africa’s sources, Orange has already drafted a potential exit plan with its advisors, but has yet to formally discuss a share buyback with Mauritius Telecom.

While deliberations are still in the early stages, Orange may choose to retain the assets for a longer period.

Despite holding a minority stake, Orange’s influence in Mauritius Telecom has diminished significantly since the expiration of the branding agreement. However, Orange remained present in Mauritius and maintained a business relationship with the company.

In fact, Orange’s business remains certified in Mauritius, and it also maintains a major service centre in the country, providing 24/7 assistance to its multinational customers in 15 languages.

The potential sale of its shares does not necessarily mean Orange is exiting Mauritius completely.

The operator’s presence in Africa and the Middle East remains strong, with Orange MEA being the company’s main growth region.

In addition to its operations in Egypt and South Africa, Orange has affiliates in several countries across the continent.

In other news related to Mauritius Telecom, the company has announced plans to launch a new subsea cable, T4, which will link Africa, the Indian Ocean islands, and Asia.

The new line is currently under discussion with several operators, including Orange SA, and is expected to replace the existing South Africa Far East (SAFE) submarine cable.

Meanwhile, a consortium led by Thales, a French IT company, has secured a 10-year deal to upgrade Mauritius’ national ID system with digital identity technology.

The digital ID wallet, designed to be interoperable based on ISO standards, will be the first of its kind in Africa.

Source: Techpoint Africa