Orange Group acquired shares in BT in 2016, as part of the deal that saw BT take ownership of mobile network operator, EE
Orange Group has announced that it is to sell off its remaining 2.5 per cent stake in the UK’s incumbent telco, BT. Orange Group’s stake in BT is currently valued at around £495 million.
The deal will see Orange Group sell off all of its remaining 248 million shares, with BT Group agreeing to buy back around £80 million worth of the outstanding Orange shares.
The final terms of the Share Placement will be determined by Orange at the conclusion of the book building process.
Orange Group originally acquired its stake in BT when BT took over the UK mobile network operator, EE, in 2016. EE was originally set up as a joint venture between Orange Group and Deutsche Telekom.
The announcement comes as BT looks to rejuvenate itself under the stewardship of its new CEO, Philip Jansen. Last month BT become the first operator in the UK to launch 5G mobile network services through its subsidiary EE.
Orange Group has not yet announced how the cash raised will be reinvested, but with the French 5G spectrum auction just around the corner, the timing could work out well for the French telco.