Orange
Note: This is a daily stock update and the information stands true as of 03/11/25, 09:00 CET.
Company Update:
Orange will pay €4.25bn to buy the 50% stake it didn't own in Mas Orange (owned by KKR, Cinven and Providence) and will consolidate the company in its financial statements. The price paid is below the €5bn requested by the funds and stands around 6.5x EV/EBITDA. Orange expects the deal will generate €500m of synergies (ow 300m were already generated in 2025) and the group will consolidate €9.5bn in additional debt while Mas Orange generate €7.5bn in sales and c 2.5bn in EBITDA.
Expert Opinion:
This is good news. While the move was expected (it had been announced a couple of quarters ago), the price paid is a good surprise. We still like the telecom sector and especially Orange. Very much like Orange France, Mas Movil's capex plan has peaked and EBITDA will gradually outgrow capex significantly. This will enable Orange to gradually return more cash to shareholders. Furthermore, the consolidation in Spain could continue with the potential bid by Telefonica on Vodafone Spain. Despite its French exposure, Orange is still an attractive asset that trades on a PE 25 and 26 of 12.3x and 11.2x with a dividend yield of c 5.7%. Our expert still likes Vodafone better (slightly cheaper and better EPS growth) but Orange offers an attractive defensive profile in the sector.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
Company Update:
Orange will pay €4.25bn to buy the 50% stake it didn't own in Mas Orange (owned by KKR, Cinven and Providence) and will consolidate the company in its financial statements. The price paid is below the €5bn requested by the funds and stands around 6.5x EV/EBITDA. Orange expects the deal will generate €500m of synergies (ow 300m were already generated in 2025) and the group will consolidate €9.5bn in additional debt while Mas Orange generate €7.5bn in sales and c 2.5bn in EBITDA.
Expert Opinion:
This is good news. While the move was expected (it had been announced a couple of quarters ago), the price paid is a good surprise. We still like the telecom sector and especially Orange. Very much like Orange France, Mas Movil's capex plan has peaked and EBITDA will gradually outgrow capex significantly. This will enable Orange to gradually return more cash to shareholders. Furthermore, the consolidation in Spain could continue with the potential bid by Telefonica on Vodafone Spain. Despite its French exposure, Orange is still an attractive asset that trades on a PE 25 and 26 of 12.3x and 11.2x with a dividend yield of c 5.7%. Our expert still likes Vodafone better (slightly cheaper and better EPS growth) but Orange offers an attractive defensive profile in the sector.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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