EE's Shareholders Cancel Plans for Stock Market Listing
Published on: 17th Jan 2014
Note -- this news article is more than a year old.
By: Ian Mansfield
Plans to sell shares in the UK mobile network operator EE have been put on hold by its two joint shareholders Germany's Deutsche Telekom and France's Orange.
EE was formed from the merger of their two UK network subsidiaries, T-Mobile and Orange.
Orange said in a statement that shareholders agreed to keep the current ownership structure for now as the "best option for value creation."
The decision follows a review that was initiated last year and had been expected to see a portion of the company floated onto the London stock market.
Rumours of an IPO for the company had been around for at least a year, with the most recent suggesting that the two shareholders would look to sell a 25% stake in the firm for around USD3 billion.
The two shareholders are no longer looking at either an IPO or capital increase, believing that the rollout of LTE services will raise the value of the company in the long term.
The move may frustrate EE's CEO, Olaf Swantee though, who has made no secret of his desire for more independence for the company.
USA based AT&T was also said to have looked at a bid for EE as part of its expected move into European markets.