Gold prices steady ahead of Fed decision; weekly weakness noted
Investing.com -- Orange has reportedly hired advisors to explore acquiring the remaining 50% stake in its Spanish joint venture MasOrange Spain, according to information from Expansion.
The French telecommunications company currently owns half of the Spanish joint venture, with the other 50% held by private equity partners. Orange does not currently consolidate the business in its financial reporting.
If Orange proceeds with the acquisition, estimates suggest the company would re-consolidate approximately €1.6 billion of operating free cash flow by fiscal year 2026.
The report from Friday values the 50% stake at between €5.5 billion and €6.5 billion, which would imply an enterprise value of €23.2 billion to €25.2 billion. This represents 8.3 to 9.0 times the estimated 2026 EBITDAaL (EBITDA after leases).
Morgan Stanley (NYSE:MS) analysts noted, "We believe that potential FCF accretion would be meaningful, ranging between +12% and +19% (based on the article’s prices, cost of debt of 5%, FY 26e-27e)."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.