Orange reported to be considering IPO of its African unit

Orange is reported to be eyeing a public offering of its African unit, as it looks to free-up funds from the fast-growing business to support its operations in its more mature European markets.

According to Bloomberg, the talks are at an early stage, and it is not clear if such a move would also include Orange’s assets in the Middle East. It is also not certain how big a stake in the business would be offered.

Newspaper L’Agefi said that finance head Ramon Fernandez and European head Gervais Pellissier had discussed the move in meetings with investors.

Africa and the Middle East has been the driver of Orange’s growth in recent years – the company’s H1 2014 results showed it has 91.8 million mobile customers in the region, with revenue increasing by 7.4 per cent to €2.1 billion (US$2.65 billion).

In contrast, it saw revenue declines across its core European operations, including France, Spain and Poland.

Orange has already inked a deal to offload its Ugandan business, and has said that its Kenyan operation is “under study”, as part of its strategy to be a top-two player in the markets where it operates.

The company is looking at opportunities in markets including Mauritania and Togo.