Orange SA considers selling 40% stake in Mauritius Telecom

Orange SA is weighing a sale of its 40% stake in Mauritius Telecom Ltd. as the assets are no longer considered as core, people with knowledge of the matter said.

The French company has discussed about its potential exit plan with advisers, according to the people who asked not to be identified as the information is confidential, yet Orange hasn’t formally engaged with Mauritius Telecom’s board on its interest in a share buyback, one of the people said. A decision could be made in November, another person said.

Deliberations are at an early stage and Orange may choose to keep the assets for longer, the people said. A representative for Orange declined to comment.

The shareholding in Mauritius Telecom has become less strategic for the French carrier after its brand was dropped and operations renamed MyT. Orange’s minority stake also means less influence in the nation, according to the people.

Orange’s predecessor France Telecom bought the stake in the island nation’s biggest telecommunications provider in 2000 through Rimcom Ltd., for about $261 million.

Planned deals are lighting up the telecommunication industry in Africa, home to the fastest-growing and youngest population in the world.

Global powers such as the US, China and India are vying for influence on the continent, despite challenges that include a lack of infrastructure and low-income customers.

Other owners include the Mauritian government and the National Pensions Fund, which hold 40%, and state-owned SBM Holdings Ltd. with 19%.
On its part, the Port Louis-based company has its own expansion plans outside the Indian Ocean region, one of the people said. Last year, sales rose 11% to 12.78 billion rupees.