Digicel Group is bidding for Orange Dominicana in the Dominican Republic. Digicel is one of five bidders interested in the company that is expected to be sold by the end of the year, Bloomberg reports, citing unnamed sources with knowledge of the matter.
Digicel could be good news for local consumers, by bringing badly needed competition to the Dominican telecoms market. Digicel is a mobile phone network provider operating in 31 markets across the Caribbean, Central America and Oceania regions. The company, owned by Irishman Denis O’Brien, is incorporated in Bermuda and based in Jamaica. It has about 13 million wireless users.
According to the same source, the sale is expected to generate more than EUR 1 billion.
An acquisition would give Digicel control of the Dominican Republic’s second-biggest mobile-phone company, with 38% of the market, following America Movil’s 51%, according to Orange.
Back in July, Orange CEO Stephane Richard said the company was studying the sale of the Dominican Republic operation.
Orange in the DR reported mobile sales of EUR 451 million in 2012, or about 1% of Orange’s total revenue. The unit’s sales were up 7.6% compared to 2011. At the parent company’s enterprise value of about 1.4 times sales, the Dominican Republic operation would be valued at about EUR 600 million.
www.telecompaper.com/news/digicel-mulls-orange-dominicana-acquisition-report–969725