Telecom: Orange and Deutsche Telekom sell EE to British Telecom for 16.7 billion euros

by bold-lichterman

Orange and Deutsche Telekom have just announced that they have reached an agreement with BT (British Telecom) regarding the sale of their respective shares in Everything Everywhere (EE), one of the main British telecom operators.

“The two sides have agreed on an enterprise value of £ 12.5 billion (approximately € 16.7 billion), under terms set when the exclusive negotiations were announced. This amount corresponds to 7.9 times the value of EBITDA restated for EE in 2014. Following this transaction and following the issuance of new BT shares for Orange and Deutsche Telekom, Orange will receive approximately 3, 4 billion pounds sterling (approximately 4.6 billion euros) in cash and a 4% stake in the joint entity BT / EE ”specifies Orange in a press release.

However, this arrangement must be subject to the approval of shareholders and regulatory authorities, which should take place by March 2016. “For Orange, this transaction will strengthen our balance sheet and thus open up new leeway in our markets. . By retaining a significant stake in BT, we will also benefit from the synergies of this operation which will see the creation of the first converged fixed-mobile operator in the United Kingdom ”declares Stéphane Richard, CEO of Orange.

Born in 2010 from the merger of the Orange UK and T-Mobile UK merger, EE generated sales of 6.3 billion pounds (8.4 billion euros) in 2014, for 30 million customers, 13,000 employees and 580 stores.

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