Phones 4u’s administrator PwC has agreed to sell almost 200 of the stricken reseller’s shops to network operators EE and Vodafone for about £15m (US$25m).
EE will buy 58 stores for approximately £2.5m while Vodafone will acquire 140 Phones 4u…
Phones 4u’s administrator PwC has agreed to sell almost 200 of the stricken reseller’s shops to network operators EE and Vodafone for about £15m (US$25m).
EE will buy 58 stores for approximately £2.5m while Vodafone will acquire 140 Phones 4u outlets for £12.4m.
Both deals are subject to the approval of the UK courts, and the administrator said it hopes both disposals can be ratified in one hearing. The future of the remaining 350 standalone stores hangs in the balance.
Phones 4u went into administration at the start of last week after EE and Vodafone decided not to renew their contracts with the company.
A group of investors, which hold some of Phones 4u’s £430m(US$702m) senior secured notes, had proposed to take a substantial write-down on their debt to reorganise Phones 4u so that it can meet the lower commercial terms EE and Vodafone had proposed.
PwC subsequently dashed bondholders’ hopes for a debt-for-equity swap, saying that it was not viable.
Phones 4u’s private equity-owner BC Partners has already recouped its investment in the retailer. In September 2013, Phones 4u issued £200m (US$327m) PIK toggle notes to pay BC Partners a one-off dividend, which was topped up with a further £25m in cash. This paid off all of BC Partners’ initial equity used to buy Phones 4u and the firm has made a 30% profit on its investment.
