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05/02/2015
BT To Acquire EE For £12.5bn
BT has announced the acquisition of mobile operator EE.
It is understood the agreement is worth £12.5 billion.
In a statement, the telecoms provider said the collaboration will provide customers with "innovative, seamless services that combine the power of fibre broadband with wi-fi and advanced mobile capabilities".
The takeover will cover broadband, fixed-line telephones, mobile and TV services.
As part of the deal, existing EE shareholders – Orange and Deutsche Telekom – will sell 100% of their shares, and under the new business, Orange will hold a 4% stake and receive around £3.4bn in cash. Deutsche Telecom will hold 12%.
BT has said it aims to raise £1bn through a placing of new shares to fund the deal.
Subject to the approval of BT shareholders and the UK Competition and Markets Authority, the acquisition is expected to be finalised by March 2016.
Gavin Patterson, BT Chief Executive, said: "This is a major milestone for BT as it will allow us to accelerate our mobility plans and increase our investment in them.
"Consumers and businesses will benefit from new products and services as well as from increased investment and innovation. The deal provides an attractive opportunity for BT to generate considerable value for shareholders, with significant operating and capital investment efficiencies supported by our tried and tested cost transformation activities.
"The enlarged BT will offer significant opportunities for employees as we lead the creation of a world-class digital infrastructure for Britain."
Olaf Swantee, EE Chief Executive, added: "Today's announcement will ensure the UK remains at the forefront of the mobile revolution, bringing even more innovation and investment in world leading connectivity for our customers."
(JP/CD)
It is understood the agreement is worth £12.5 billion.
In a statement, the telecoms provider said the collaboration will provide customers with "innovative, seamless services that combine the power of fibre broadband with wi-fi and advanced mobile capabilities".
The takeover will cover broadband, fixed-line telephones, mobile and TV services.
As part of the deal, existing EE shareholders – Orange and Deutsche Telekom – will sell 100% of their shares, and under the new business, Orange will hold a 4% stake and receive around £3.4bn in cash. Deutsche Telecom will hold 12%.
BT has said it aims to raise £1bn through a placing of new shares to fund the deal.
Subject to the approval of BT shareholders and the UK Competition and Markets Authority, the acquisition is expected to be finalised by March 2016.
Gavin Patterson, BT Chief Executive, said: "This is a major milestone for BT as it will allow us to accelerate our mobility plans and increase our investment in them.
"Consumers and businesses will benefit from new products and services as well as from increased investment and innovation. The deal provides an attractive opportunity for BT to generate considerable value for shareholders, with significant operating and capital investment efficiencies supported by our tried and tested cost transformation activities.
"The enlarged BT will offer significant opportunities for employees as we lead the creation of a world-class digital infrastructure for Britain."
Olaf Swantee, EE Chief Executive, added: "Today's announcement will ensure the UK remains at the forefront of the mobile revolution, bringing even more innovation and investment in world leading connectivity for our customers."
(JP/CD)
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