Deutsche Telekom and Orange agree on exclusive negotiations with BT on EE
- Enterprise value for EE set at GBP 12.5 billion
- Deal would enable fully integrated telco provider in the UK
Deutsche Telekom and Orange S.A. have agreed to enter into exclusive discussions with BT Group plc regarding the planned acquisition of the joint venture EE by BT. This has now been decided by the Board of Directors of BT as well as by the Boards of Management of Deutsche Telekom and Orange.
The three parties have agreed to continue exclusive negotiations on the potential sale of the 50:50 joint venture EE to BT over the next weeks, based on an enterprise value of GBP 12.5 billion.
During this time, due diligence will be carried out and an agreement for the planned sale of EE to BT will be negotiated. A part of the purchase price will be paid in BT shares. An implementation according to today's general agreement would see Deutsche Telekom hold a 12-percent stake in BT upon successful completion of the proposed transaction. Orange would hold 4 percent of the stated capital in BT shares. The remaining payments will be made in cash.
"We firmly believe that convergence is the future of telecommunications in Europe. Customers want fixed-mobile converged services from a single provider. The proposed transaction with BT offers the chance to further develop our superbly positioned mobile business engagement in the UK and to take part in the outstanding opportunities of an integrated business model," said Thomas Dannenfeldt, Chairman of EE's Board of Directors and CFO of Deutsche Telekom.
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