EE’s joint venture owners have put plans to list the UK mobile operator on hold as it rolls out 4G across the country to build on its first mover advantage for the services.
Joint owners Orange and Deutsche Telekom had been carrying out a strategic…
EE’s joint venture owners have put plans to list the UK mobile operator on hold as it rolls out 4G across the country to build on its first mover advantage for the services.
Joint owners Orange and Deutsche Telekom had been carrying out a strategic review on floating around 30% in 2014, with some analysts estimating EE could be valued at more than £10bn (US$16.5bn).
However, in a joint statement the JV partners said: “Deutsche Telekom and Orange have concluded the 2013 strategic asset review of EE and are very satisfied with EE’s progress and financial performance under the leadership of CEO Olaf Swantee and his management team.
“Following this review, the shareholders have both agreed that the best option for value creation is to maintain the current ownership structure for the time being, and they look forward to continuing their successful cooperation in the UK market.”
Earlier reports had said Orange appointed Morgan Stanley and BofA Merrill Lynch for advice on the potential IPO, with Deutsche Telekom hiring JP Morgan. The companies declined to comment.
Amid strong financial results and the group recently announcing it had doubled its target in 2013 with more than two million 4G customers, a listing had been widely anticipated by many in the City. But the decision to put it on the backburner could be a boost for the private equity firms rumoured to have been circling the group. Strategic players such as AT&T in the US have also been in the frame for the asset.
Even still, with UK-based mobile giant Vodafone said to be in play following the sale of its US operations, EE’s owners will likely wait to see how the consolidation trend sweeping the wider telecoms sector will play out.
The parents first announced plans to list a stake in autumn 2012, with Orange saying then it could see a window for a flotation before the end of 2013. This was later pushed to 2014 at the earliest.
