Telecoms group BT raises £1.0bn to help buy EE

12th February 2015, Comments 0 comments

British telecoms and TV firm BT has raised about £1.0 billion via a shares sale to help fund its takeover of mobile operator EE, it said Thursday.

"BT is pleased to announce the successful completion of the placing," it said in a brief statement.

The group has sold more than 222 million new ordinary shares -- or 3.0 percent of its total share capital -- at a price of 455 pence per share.

However, the news sent its share price sliding 2.17 percent to close at 450 pence, topping the fallers board on London's FTSE 100 index, which finished 0.15 percent higher at 6,828.11 points.

The company had agreed one week ago to purchase EE for £12.5 billion in a cash-and-shares deal partly funded by a £1.0-billion rights issue.

In contrast on Wednesday, BT shares had surged 3.65 percent to 460 pence after BT and broadcasting rival Sky won the UK television rights to show Premier League games for three seasons at a record cost of £5.1 billion.

The 70-percent price hike is the result of a ferocious bidding war between the pair. Sky will pay £4.2 billion for five of the seven packages and BT almost £1.0 billion for the remainder.

EE is a British mobile phone brand operated by French company Orange and Deutsche Telekom of Germany.

© 2015 AFP

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