Orange SA is considering selling its 40% stake as it loses value in Mauritius. The company still holds a minority position in Mauritius Telecom, but its influence has dwindled as the shares have lost significance.
This change was made after a ten-year contract to use the Orange brand name, which ran from September 2007 to September 2017, expired. Mauritius Telecom thereafter changed its name to MyT.
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The current state of Orange SA
The French operator firm hasn’t yet presented a share buyback plan to the Mauritius Telecom board, but they have talked with consultants about a possible exit. According to a person who spoke with Bloomberg, a decision might be taken in November.
Sherry Singh, the CEO of Mauritius Telecom, stated at the time that despite Orange owning a 40% ownership in the company, there is still a business relationship in place. This was in response to the rebranding.
Orange is a French telecom provider that was once known as France Telecom. In 2000, the company’s predecessor, France Telecom, paid up to $261 million through Rimcom Ltd. for the company’s shares in Mauritius Telecom.
The National Pensions Fund, the Mauritian government, and state-owned SBM Holdings Ltd. are among the other shareholders in the business.
Africa and the Middle East are home to Orange, with Orange MEA serving as the group’s primary growth area. Orange claims that its affiliate, Orange Egypt, has its business certified in Egypt, Mauritius, and South Africa. The operator stated that its main service centres in Cairo and Mauritius offer its international clients round-the-clock support in fifteen languages.
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Orange is not ‘fully’ leaving Mauritius
Orange may not be fully leaving Mauritius if it sells its holdings in Mauritius Telecom. Notwithstanding the possible divestment, the operator’s firm is still certified in Mauritius, and they still keep a centre there, demonstrating their ongoing presence in the nation.
To improve regional coverage, Mauritius Telecom revealed plans in April 2024 for a new underwater cable called T4, which will connect Asia, the Indian Ocean islands, and Africa. The South Africa Far East (SAFE) underwater cable will be replaced by the new line, which is presently being discussed with a number of providers, including Orange SA.
In other news, a group led by the French IT giant Thales has managed to get a 10-year contract to modernise the national ID system of Mauritius with digital identity technologies. This digital ID wallet will be the first of its kind in Africa, built to be interoperable based on ISO standards.