2/5/2015 7:41:14 AM
BT agrees to acquire EE for £12.5bn
BT has announced it has agreed definitive terms to acquire EE for £12.5bn.
The deal is a combination of cash and shares with Deutsche Telekom taking a 12% stake in BT and will be entitled to appoint one non-executive member of the BT Board of Directors. Orange will hold a 4% stake in BT.
The media giant said that the combination of EE and BT would ‘provide customers with innovative, seamless services that combine the power of fibre broadband with wi-fi and advanced mobile capabilities. Integrating the two companies will accelerate BT’s mobility strategy and increase BT’s capacity for future investment and product innovation as it continues to build world-class digital infrastructure in the UK.’
BT revealed that the cash consideration will be financed by a combination of new debt financing and approximately £1bn from the placing of new BT shares. The Equity Placing will be launched in due course.
See our 60 second video explanation of the BT EE deal by clicking here.
Read our analysis of the deal here.