France is reportedly set to reduce its stake in Orange through a share sale that could raise around €1.1 billion.
According to Reuters, which cited two people familiar to with the matter, the French state shareholding agency (APE) and state investment bank Bpifrance, which together are Orange’s largest shareholder, are expected to sell 66.5 million shares in the country’s biggest telecoms operator.
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As a result, the move would reduce the state’s combined holding from roughly 23% to 20.4%.
The anonymous sources said the sale is being carried out through a secondary share offering launched yesterday.
Although the government is reducing its financial stake, it is expected to retain significant influence over the company.
This comes as France’s voting power is expected to remain close to the 30% threshold, despite its reduced shareholding.
One source said the structure allows the government to sell shares while continuing to play a major role in Orange’s future. The source also said discussions between Orange and the French government over the proposed sale have been taking place for around two years.
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