Proximus contemplates TeleSign transaction
Proximus is reportedly contemplating selling a minority stake in its subsidiary TeleSign by merging it with a special purpose acquisition company (SPAC).
According to reports, the news comes as the company aims to raise funds to finance its network investments, particularly its fibre deployment.
There have been rumours that an offer for TeleSign has already been received by Proximus, leading to the company to release a statement confirming that it has " initiated preliminary discussions regarding a potential strategic transaction involving TeleSign".
" A public listing through a SPAC merger has indeed come out of this process as one of the potential strategic routes that Proximus is currently exploring. The process is still ongoing and several steps need to be taken to finalize. The company will not further comment at this stage."
Having acquired TeleSign in February 2021, Proximus says it is "committed to support TeleSign on its fast growth path as a leading authentication and digital identity player" adding that that in support of this, the company has been "exploring different strategic options to unlock the full value of TeleSign while keeping majority ownership".
At the time of the acquisition it was confirmed that the "acquisition allows Proximus to combine the robust free cash flow generation of BICS with the attractive revenue growth of TeleSign".
"…we want to support TeleSign’s fast growth as digital leader in programmable communications and digital identity services," said Guillaume Boutin, CEO of the Proximus Group.