France-based Bouygues Telecom has announced that it has entered into exclusive negotiations with La Poste Group to acquire 100 percent of its subsidiary, La Poste Telecom, which is behind the virtual operator (MVNO) La Poste Mobile. Currently, La Poste Telecom is co-owned by La Poste group (51 percent) and SFR (49 percent). Additionally, the partnership will establish an exclusive distribution network involving La Poste Group, La Banque Postale, and La Poste Telecom.
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Acquisition
The acquisition price for La Poste Telecom's shares is EUR 950 million, with adjustments contingent upon the timing of the transaction, resulting in an enterprise value of EUR 963.4 million. After the conclusion of SFR's wholesale contract exclusivity by the end of 2026, La Poste Mobile's customers will transition to Bouygues Telecom's radio network.
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Strengthening Mobile Customer Base
Bouygues Telecom said this transaction aligns fully with its growth strategy and enables it to strengthen its mobile customer base, which currently stands at around 2.3 million users.
According to Bouygues Telecom, "Thanks to this agreement, Bouygues Telecom will be able to increase its customer base and strengthen its position in both mobile and fixed services drawing on La Poste’s distribution network throughout the country. Bouygues Telecom will bring its expertise and the quality of its fixed and mobile infrastructures to La Poste Mobile, on which La Poste Mobile will be able to draw to continue its development."
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Customer migration and Integration
Bouygues Telecom anticipates no additional investment for network expansion, utilizing its existing radio network capacity. However, integration costs (opex/capex) are planned for 2025 and 2026 to prepare for customer migration.
Following the migration of customers in 2027, the La Poste Telecom acquisition is expected to contribute approximately EUR 140 million in EBITDA annually starting from 2028.
The transaction is expected to be completed by the end of 2024, subject to necessary approvals and SFR not exercising its pre-emption right.
