Member Article

BT to acquire EE for £12.5 billion

BT has announced that it is to acquire EE for a consideration of £12.5 billion.

Deutsche Telekom AG and Orange SA, the joint shareholders of EE Ltd, reached an agreement with BT Group plc (BT) to sell 100% of their shares in EE.

EE has a reported 31 million customers of which 24.5 million are direct mobile customers1 and 834,000 are fixed broadband customers. It has the largest 4G customer base of any operator in Europe.

The cash consideration will be financed by a combination of new debt financing and approximately £1 billion from the placing of new BT shares.

BT chief executive Gavin Patterson said: “This is a major milestone for BT as it will allow us to accelerate our mobility plans and increaseour investment in them. The UK’s leading 4G network will now dovetail with the UK’s biggest fibre network,helping to create the leading converged communications provider in the UK.

“Consumers and businesses will benefit from new products and servicesas 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.”

EE chief executive Olaf Swantee said: “Joining BT represents an exciting next stage for our company, customers, and people. In the last few years alone, we have built the UK’s biggest, fastest and best 4G network, significantly advancing the digital communications infrastructure for people and businesses across Britain.

“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.”

This was posted in Bdaily's Members' News section by Clare Burnett .