A major divestment of Orange shares by French state entities is underway, according to reporting by Reuters citing sources with knowledge of the transaction. The state shareholding agency APE and the state investment bank Bpifrance—which jointly control Orange as its principal shareholder—plan to sell 66.5 million shares in the nation's premier telecommunications company.
The transaction, structured as a secondary offering that commenced yesterday, would bring the combined state ownership down from approximately 23% to 20.4%.
Despite the reduction in equity ownership, France is positioned to maintain considerable sway over Orange's strategic direction. The government's voting power is anticipated to remain in the vicinity of the 30% mark, preserving its influence even as the shareholding shrinks.
According to one of the sources, "the structure allows the government to sell shares while continuing to play a major role in Orange's future." The same source noted that negotiations between Orange and French authorities regarding this divestment have been underway for roughly two years.
