Polygon Announcement on Orange Belgium Valuation

LONDON, Feb. 17, 2021 /PRNewswire/ -- Polygon Global Partners LLP is the investment manager for the Polygon European Equity Opportunity Master Fund and certain client accounts which collectively are the holders of 5.29% of Orange Belgium's (Ticker: OBEL) total share capital.

As indicated in its press release dated 1 February 2021, Polygon has hired investment bank Ondra as its financial advisor in relation to Orange SA's announcement (as published by the Belgian Financial Services and Markets Authority on 21 January 2021) of its intention to launch a voluntary conditional public takeover bid on all the shares of Orange Belgium that it does not yet own.  Ondra has been carrying out a valuation of Orange Belgium, the results of which have now been communicated to Polygon.

In summary, based on the assumptions set forth below, Ondra has valued Orange Belgium's shares, on a standalone basis, in a range between ?[32] and ?[36] per share, with the possibility of a value of up to ?[45] per share in the case of a partial or total monetisation of its telecom towers.

In performing its work, Ondra has exclusively used publicly available data, including financial projections, as reference data for the financial performance of Orange Belgium.  In particular, Ondra did not have access to confidential financial information established by Orange SA or Orange Belgium and has not discussed operating assumptions with Orange SA or Orange Belgium.

Ondra has used a multi-criteria approach in assessing the value range of Orange Belgium shares as per market standards.  This approach comprises a variety of valuation methods, consisting mainly of

(i)  market-driven methods such as reference to capitalisation multiple of publicly-listed companies having a similar business model, geographic focus, growth and profitability profile to Orange Belgium, and reference to precedent transactions multiples in the sector where Orange Belgium operates;

(ii)  intrinsic value methods based on capitalised earnings value such as the Discounted Cash flows method and the "Sum-of- the-parts" (or "break-up value") method, where parts of a company are valued separately.

In addition to a "standalone" valuation where Orange Belgium's growth profile and standalone earnings generation capacity are analyzed in its current perimeter, Ondra has also performed an assessment of the value creation potential achieved through the monetisation of selected Orange Belgium infrastructure assets, notably its telecom towers portfolio.

A copy of the report will be been sent to Orange Belgium's Board of Directors and Polygon remains at its disposal and at that of Orange SA's management.

About Polygon:
Polygon is a global private investment firm founded in 2002 managing approximately $1.4 billion across a number of asset classes and businesses.  Its investment capabilities are supported by a robust operational and risk infrastructure. Polygon is a part of Tetragon Financial Group Limited's alternative asset management platform, TFG Asset Management.

This press release has been issued for information purposes only and does not constitute investment advice.  Orange Belgium shareholders should seek their own advice in relation to the Orange SA tender offer.  "The information in this press release should not be interpreted as implying that Polygon's clients who currently hold positions in Orange Belgium will increase or retain those positions during any particular time period, although they may do so.  Polygon further reserves the right to reduce the clients' positions in Orange Belgium at any time."

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