Orange, originally known as France Telecom, announced that it is now considering selling its operations in the Dominican Republic. Orange provides internet and mobile services in the Central American country. The asset sale could rake in as much as US$1.2 billion. The net proceeds, Orange said, would be used to offload debt.
Orange is currently consulting investment firms and several banks over the asset offering. Orange expects to entice offers from some large Latin American industry players like Digicel, Cable & Wireless Communications, and Millicom. Orange also expects some private equity agencies in the U.S. and Latin America to put up offers.
Orange Dominica is one of the largest telecom carrier in the region and controls 38.4% market share. This would leave Claro out of the offering by default. Claro is already the largest service provider in the country and has more than half of the market share. If Claro was to acquire Orange, Claro would have a combined market share of more than 90%. Analysts cannot see Claro getting the regulatory permission to acquire Orange.
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