According to a statement by Deutsche Telekom (DT), both DT and Orange have agreed to enter into exclusive discussions with the BT Group regarding the planned acquisition of EE. The statement says that all three parties have agreed to continue exclusive negotiations on the potential sale of EE to BT over the next weeks, based on an enterprise value of GBP 12.5 billion.
Based on Reuters' interview with Tim Hoettges, CEO of Duetsche Telekom, the negotitations are expected to be completed in the first quarter of 2015.
BT Group in a separate statement confirmed that it has entered into an exclusivity agreement with Deutsche Telekom and Orange in relation to BT’s possible acquisition of all of their UK mobile business. BT said that the period of exclusivity will last several weeks allowing BT to complete its due diligence and for negotiations on a definitive agreement to be concluded.
Deutsche Telekom is expected to hold a 12-percent stake in BT upon successful completion of the proposed transaction, while Orange will hold 4 percent of the stated capital in BT shares.
Thomas Dannenfeldt, Chairman of EE’s Board of Directors and CFO of Deutsche Telekom
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.
