Bouygues Telecom to Acquire La Poste MVNO for EUR 950 Million

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.

Highlights

  • Bouygues Telecom in exclusive negotiations to acquire La Poste Telecom, subsidiary of La Poste Group.
  • Acquisition aims to bolster Bouygues Telecom's mobile customer base and leverage La Poste's distribution network.
  • Expected completion by end of 2024, subject to approvals and pre-emption right.

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Bouygues Telecom to Acquire La Poste MVNO for EUR 950 Million
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.

Also Read: Bouygues Telecom Modernises IP Core Network for Capacity and Energy Efficiency




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.

Also Read: Bouygues Telecom and SFR Receive Approval for 5G Inclusion in Network-Sharing Agreement

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."

Also Read: Bouygues Telecom Deploys Broadpeak’s nanoCDN for Multicast ABR Streaming

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.

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Telecom Analyst

Passionately following the Indian #Telecom Industry for over a decade from Business, Consumer and a Technical perspective. My primary focus area is Consumer & Digital Experience.

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