After months of negotiations, BT has finalised the terms of its buyout of the EE mobile network.
Handing over £12.5bn, BT will pick up 100 per cent of shares from EE shareholders Orange and Deutsche Telekom. Deutsche Telekom will hold 12 per cent in the new business, as well as a seat on the board, while Orange receives a four per cent stake and £3.4bn in cash. BT will fund the deal with a placing of new shares, which could raise as much as £1bn.
Picking up EE's 7.7 million subscribers, BT reckons it will be saving £360 million a year from the deal in terms of operating cost and capital investment within the first four years of the combined business, while sales should rise by £1.6bn a year.
BT will still have to get the deal past the Competition and Markets Authority, but with EE's parties now content, the takeover could be complete by next March.