mmO2 plans buy-out

13 Jan 2005

The UK-based mobile firm mmO2 is hoping to simplify its shareholder structure with a cash buy-out of shares held by more than a million small investors. The company says the deal to streamline its ownership will lead to significant savings in its administration costs; it claims that in many cases the cost of mailing dividend cheques is greater than the actual amount of the dividend. 63% of mmO2’s shareholders hold less than 600 shares and between them they represent just 3.5% of the company’s issued capital. mmO2 will delist in March while it reorganises its corporate structure and re-emerges under the name O2. Small shareholders will be offered one O2 share for each mmO2 share or a cash alternative with a premium of five pence per share. mmO2 has mobile operations in the UK, Ireland and Germany and serves a total of 22 million customers.

United Kingdom, Telefonica O2 Europe