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Deutsche Telekom considering sale of stake in BT?

7 Nov 2016

Germany’s Deutsche Telekom (DT) is rumoured to be considering divesting the 12% stake it holds in Britain’s BT Group, according to Reuters, which cites two sources familiar with the matter. With the move said to be under consideration in the wake of the UK’s vote to leave the EU, it has been suggested that the German group will take a final decision on the matter next year, once there is greater clarity on the deal that might be struck between the UK and the EU.

Deutsche Telekom became BT’s largest shareholder following the latter’s acquisition of mobile network operator EE which concluded in January 2016; with the German outfit having been a 50% stakeholder in the cellco, with Orange Group holding the other 50%, it took a 12% stake in BT as part of the deal to sell EE. With DT’s stake in BT currently valued at around GBP4.4 billion (USD5.5 billion), the report notes that there is, however, a lock-up agreement which would prevent DT from selling the holding before August 2017, unless it were to agree an off-market deal with financial investors.

United Kingdom, BT Group (incl. Openreach), Deutsche Telekom (DT)

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