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Deutsche Telekom and Orange agree on exclusive negotiations with BT on EE

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  • Enterprise value for EE set at GBP 12.5 billion
  • Deal would enable fully integrated telco provider in the UK

Deutsche Telekom and Orange S.A. have agreed to enter into exclusive discussions with BT Group plc regarding the planned acquisition of the joint venture EE by BT. This has now been decided by the Board of Directors of BT as well as by the Boards of Management of Deutsche Telekom and Orange.

The three parties have agreed to continue exclusive negotiations on the potential sale of the 50:50 joint venture EE to BT over the next weeks, based on an enterprise value of GBP 12.5 billion.

During this time, due diligence will be carried out and an agreement for the planned sale of EE to BT will be negotiated. A part of the purchase price will be paid in BT shares. An implementation according to today’s general agreement would see Deutsche Telekom hold a 12-percent stake in BT upon successful completion of the proposed transaction. Orange would hold 4 percent of the stated capital in BT shares. The remaining payments will be made in cash.

"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," said Thomas Dannenfeldt, Chairman of EE’s Board of Directors and CFO of Deutsche Telekom.

About Deutsche Telekom Deutsche Telekom is one of the world’s leading integrated telecommunications companies with over 142 million mobile customers, 31 million fixed-network lines and more than 17 million broadband lines (as of December 31, 2013). The Group provides fixed network, mobile communications, Internet and IPTV products and services for consumers and ICT solutions for business customers and corporate customers. Deutsche Telekom is present in around 50 countries and has approximately 229,000 employees worldwide. The Group generated revenues of EUR 60,1 billion in the 2013 financial year – more than half of it outside Germany.

About EE EE is the largest and most advanced digital communications company in Britain, delivering mobile and fixed communications services to consumers, businesses, government and the wholesale market. EE has approximately 15,000 employees and 580 retail stores, and serves more than 30 million customers across its mobile, fixed and wholesale businesses. EE runs the UK's biggest, fastest and most reliable mobile network, pioneering the UK's first superfast 4G mobile service in October 2012. EE's 4G coverage today reaches 75% of the UK population. EE's superfast fibre broadband service covers 54% of the UK population, and ADSL broadband service covers 98.7% of the population. In the last few years, EE has received extensive independent recognition including being ranked the UK's best overall network by RootMetrics®, Best network at the 2014 Mobile News Awards, Fastest Network at the 2013 uSwitch Awards, Best Network at the 2014 Mobile Choice Consumer Awards and What Mobile Awards 2013, Network Innovation at the 2013 Recombu awards and Best Network for Business at the 2013 Mobile Industry awards.

Disclaimer This media information contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. Forward-looking statements are based on current plans, estimates, and projections. They should therefore be considered with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom's control. If these risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, results may be materially different from those expressed or implied by such statements. Deutsche Telekom can offer no assurance that its expectations or targets will be met. Without prejudice to existing obligations under capital market law, Deutsche Telekom does not assume any responsibility for updating forward-looking statements by taking new information or future events or other matters into account. The exclusivity agreement does not require the parties to enter into a transaction and there can be no assurances that one will occur. If a transaction is agreed, approval by BT’s shareholders will be required as a condition of the purchase.

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