5th February 2015
In landmark deal, BT has agreed to buy EE for £12.5bn, creating a telecommunications giant that will cover mobile, fixed line, broadband and television services.
BT shares jumped 5%, or 21p to 444p by 09:50 on the back of the announcement.
Current EE stockholders Orange and Deutsche Telekom will sell 100% of their shares and the latter firm will get a12% stake in the new business and have a seat on the board.
For its part Orange will receive a 4% and around £3.4bn in cash.
In a statement, BT chief executive Gavin Patterson said: “This is a major milestone for BT as it will allow us to accelerate our mobility plans and increase our 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.”
“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.“
EE chief executive Olaf Swantee added: “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.”