Hutchison Whampoa to acquire Orange Austria

Hutchison will pay EUR1.3billion ($1.7 billion) for Orange Austria, including debt, according to people familiar with the matter.

In October 2007, Mid Europa Partners acquired a 65% stake in Orange Austria as a controlling stakeholder, with France Telecom holding 35%. France Telecom may receive about EUR100 million in cash from the transaction, Bloomberg reported.

Orange Austria, with market share of 20% and approximately 2.2 million subscribers, is the third-largest mobile operator in Austria, followed by Hutchison Austria's 3G. The combined entities will have 2.8 million, or 22% of the market.

As part of the deal, Hutchison will sell some assets of Orange Austria to Telekom Austria for EUR390 million, Telekom Austria said in a statement. These assets comprise frequencies, base stations sites, the mobile phone operator YESSS! Telekommunikation, as well as certain intellectual property rights.

Hutchison 3G has expanded aggressively in Europe, targeting countries including Austria, Italy, Sweden and the UK. Hutchison Whampoa's price rose as much as 3.5 % in Friday's morning trading, despite a drop in the benchmark Hang Seng Index.

 

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