BT Group Buys EE for $19 Billion By Alex MacDona
Post# of 17653
Posted On: 02/05/2015 9:56:44 AM
BT Group Buys EE for $19 Billion
By Alex MacDonald
LONDON--Telecom company BT Group PLC said Thursday it has agreed to acquire mobile operator EE from Deutsche Telekom AG and Orange SA for GBP12.5 billion ($18.98 billion).
The deal puts the British fixed-line giant back into mobile services and further scrambles a fast-moving telecoms sector across Europe. BT plans to pay for EE through a combination of cash and BT shares. The U.K.-based telecommunications company plans to fund the cash component of the deal through new shares, which will aim to raise about GBP1 billion, and through the issuance of new debt.
Following the BT purchase, Deutsche Telekom will hold a 12% stake in BT and will be entitled to appoint one nonexecutive member of the BT board of directors. Orange will hold a 4% stake in BT.
EE is a leading mobile network operator in the U.K. with 31 million customers of which 24.5 million are direct mobile customers and 834,000 are fixed broadband customers. It has the largest 4G customer base of any operator in Europe.
By Alex MacDonald
LONDON--Telecom company BT Group PLC said Thursday it has agreed to acquire mobile operator EE from Deutsche Telekom AG and Orange SA for GBP12.5 billion ($18.98 billion).
The deal puts the British fixed-line giant back into mobile services and further scrambles a fast-moving telecoms sector across Europe. BT plans to pay for EE through a combination of cash and BT shares. The U.K.-based telecommunications company plans to fund the cash component of the deal through new shares, which will aim to raise about GBP1 billion, and through the issuance of new debt.
Following the BT purchase, Deutsche Telekom will hold a 12% stake in BT and will be entitled to appoint one nonexecutive member of the BT board of directors. Orange will hold a 4% stake in BT.
EE is a leading mobile network operator in the U.K. with 31 million customers of which 24.5 million are direct mobile customers and 834,000 are fixed broadband customers. It has the largest 4G customer base of any operator in Europe.
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