Paris-France’s largest telecommunications conglomerate Orange said it would buy insurer Groupama’s 21.7 percent stake in its online banking arm Orange Bank, and also provide the bank with a capital increase of 230 million euros ($266.4 million).
“To spur Orange Bank’s growth, Orange is continuing to invest in its Bank,” Orange said in a statement.
Reuters reported in early March that Orange was looking for a new investor in its banking unit.
Orange CEO Stephen Richard said in April that the search for a new investor does not mean the group wants to sell its banking unit, adding that the telecom company will continue in the venture “on its own” if Groupma exits. Wants to leave and if he does so, no other partner can be found.
French media reported in the summer that BNP Paribas and Société Générale were interested in buying a stake, but Orange ended the discussions, considering the banks’ demands were too high.
Orange will now own 100 percent of its banking unit. It did not say how much it paid Groupama for its stake.
It also said Orange Bank, which was launched four years ago and now has 1.6 million customers in France and Spain, will “significantly” reduce its losses in 2021, partly due to a 57 percent increase in its net banking income. Thank You for. compared to the first half of 2021 versus the same period in 2020.
This News Originally From – The Epoch Times