Proximus, based in Belgium, to buy a 58% Stake in Route Mobile

Belgium-based Proximus Group has recently made a substantial move in the market, announcing its acquisition of a nearly 58% stake in Route Mobile, a cloud communication platform provider based in Mumbai. The deal, valued at a staggering ₹5,922 crore, is set to reshape the landscape of the cloud communications industry in the region. According to an official exchange filing, the stake will be purchased from the existing promoters of Route Mobile, with each share fetching ₹1,626.40.

However, regulatory requirements dictate that Proximus must also extend an open offer to buy an additional stake of up to 26%. This stipulation could potentially further bolster Proximus' share in Route Mobile, potentially raising it to an impressive 75%. Such a significant acquisition demonstrates Proximus' commitment to expanding its foothold in the cloud communication space and capitalizing on the growing demand for such services.

The acquisition will be carried out through Proximus Opal, a subsidiary of the Proximus Group, and the US-based holding company of Telesign—an affiliate of Proximus. The initial cash consideration for the acquisition amounts to Rs 59,224 million. Route Mobile elaborated on the transaction, stating, "Proximus Group will acquire 57.56 percent of the shares in Route Mobile through Proximus Opal, for an initial Rs 59,224 million cash consideration for a price per share of Rs 1,626.40."

Moreover, the agreement also includes a provision where some of the founding shareholders of Route Mobile will reinvest in Proximus Opal, thereby obtaining a minority stake in the subsidiary. The reinvestment sum is expected to be around 299.6 euros, allowing these shareholders to secure up to 14.5 percent of Proximus Opal's shares. This strategic move further strengthens the relationship between Route Mobile and Proximus, aligning their interests for future growth and success in the cloud communications market.

Significantly, this reinvestment has led to an implicit valuation of Telesign, an affiliate of Proximus, at a remarkable 1.4 billion euros. Such a valuation underlines the immense potential and value that Proximus sees in Telesign's role within its expanding portfolio. This move also solidifies Proximus' presence in the US market and highlights its intent to leverage Telesign's capabilities to drive innovation and broaden its reach in the global cloud communication space.

The acquisition of Route Mobile, along with the reinvestment in Proximus Opal, signals a strategic shift in Proximus' growth strategy, focusing on establishing a robust foothold in the cloud communication market and expanding its global reach. As the demand for cloud-based communication services continues to rise, Proximus aims to position itself as a leading player in the industry, providing innovative and reliable solutions to its customers.

With the transaction pending regulatory approvals and the outcome of the mandatory takeover offer, the cloud communication industry awaits the finalization of the deal, which promises to bring about significant changes in the dynamics of the market. As Proximus and Route Mobile join forces, their combined expertise and resources are set to pave the way for groundbreaking developments in cloud communication services, benefiting businesses and customers alike. As the world becomes increasingly interconnected, Proximus' strategic investment in Route Mobile and Telesign ensures it remains at the forefront of digital transformation, ushering in a new era of seamless and efficient communication services.