Intouch Advance’s partners BT and EE made headlines today, with the announcement that BT have agreed to acquire EE in a cash and shares deal worth £12.5 billion.
BT announced in December that it was in talks to buy Britain’s largest mobile operator and the deal, which will be partly financed with a £1bn share issue, and will now create the UK’s leading communications provider.
EE shareholder Deutsche Telekom and Orange Group will hold stakes of 12% and 4% in BT, with Deutsche getting a seat on the board.
The group plans to sell a full range of its services – broadband, fixed line and pay-TV services – to the combined customer base of more than 10 million BT retail customers and 24.5 million direct mobile subscribers with EE.
BT said that by combining EE’s 4G network with its extensive superfast broadband network it would have greater scope for future investment and product innovation.
The deal is subject to approval by shareholders and the Competition and Markets Authority. It is expected it could be completed by the end of the financial year ending in March 2016.