News
Mobile operator reportedly close to securing cornerstone investor for float.
O2 UK is considering giving customers the chance to acquire shares in the company as part of a flotation valuing it at £10 billion.
According to sources cited by the Telegraph on Saturday, the shares could be offered to those signed up to O2’s loyalty programme, Priority, which gives members access to discounted food, travel, and gifts, among others, as well as early access to concert tickets.
"Selling shares to customers could be a good way of getting them to buy into the O2 brand even more," said a source, in the report.
O2 UK parent Telefonica is allegedly holding informal talks with sovereign wealth funds that were originally keen on investing in a combined O2 and 3UK about becoming cornerstone investors in a float.
The companies’ proposed merger was blocked by the European Commission over concerns that it would harm competition and result in higher prices for consumers.
According to the Telegraph, at least one fund is likely to invest if Telefonica pursues a flotation of O2 UK.
The rumours emerged just days after Telefonica revealed it will consolidate its U.K. operation within the group. The Spanish incumbent has been reporting O2 UK’s results as discontinued and ‘held for sale’ since it agreed the 3UK deal.
That suggests Telefonica has no immediate plans to exit the U.K.; however, Telefonica made it clear that it is still considering various options for O2.
"The work going on now is less about ways of selling the business and more exploring the strategic ways to build value," said the Telegraph’s source.
