BT Agrees To Buy UK Mobile Network Operator EE For £12.5 Bln - Quick Facts

(RTTNews) - UK-based fixed-line operator BT Group plc (BT_A.L, BT) has finalized a 12.5 billion pounds deal to acquire EE, Britain's largest mobile network, from Deutsche Telekom AG (DTEGY.PK) and Orange.

The consideration for EE would be payable as a combination of cash and new BT ordinary shares issued to both Deutsche Telekom and Orange. The cash consideration would be financed by a combination of new debt financing and approximately 1 billion pounds from the placing of new BT shares. The equity placing would be launched in due course.

Following the transaction and equity placing, Deutsche Telekom will get a 12% stake in BT and the right to appoint one board member, while France's Orange would get more cash and a 4% stake in BT.

The transaction is expected to be accretive to FCF per share in the first full year post completion. As a result of EE's high depreciation charge, reflecting historical network investment, the transaction is likely to be accretive to adjusted earnings per share one year later. It is expected to complete before the end of BT's 2015/16 financial year.