BT shareholders approve £12.5bn deal for EE with 99 percent backing

BT shareholders see the benefits of the EE deal

BT shareholders overwhelmingly backed the company’s £12.5bn move for EE at a general meeting to finalise the deal.

Overall,  99.73 percent of shareholders backed the deal, equating to over five billion of the shares held in BT. An even larger 99.77 percent agreed to a buy back of BT shares from Deutsche Telekom and Orange, the owners of EE.

V3 contacted BT for comment on the vote but had received no reply at the time of publication.

The vote is not surprising, but the sheer weight of the approval for the deal shows how importantly those with a vested interest in BT see the move into the mobile market, even if it comes with a hefty multi-billion pound price tag.

BT said in its pitch to investors before the vote that it expects the acquisition to grow its business by 25 percent, and will take the company from offering the best of fixed communications in the UK, to offering the best ubiquitous connectivity. The slide below shows how BT sees the deal benefiting the company.

BT sees many benefits to its deal for EE

BT also noted EE’s significant customer base, especially in the 4G market where EE is nearing the 10 million user mark in line with its goal of 14 million 4G customers by the end of the year.

This will give BT a huge presence in all areas of the telecoms market and enable it to become a true quad-play provider, covering broadband, phone, mobile and TV services.

BT said that it hopes to have the deal completed by 30 September if it is approved straightaway by the Competition Market Authority, or by 31 March 2016 if a more detailed review is conducted.

This could well be the case, as Three’s move for O2 could throw a spanner in the works of BT’s deal by creating a three-player mobile market, something that regulator Ofcom has tried hard to avoid.

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1 May 2015 | 9:50 am – Source: v3.co.uk

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