Deutsche Telekom is reportedly considering offloading the company’s half of UK mobile operator Everything Everywhere after failing to sell its mobile operations in the US.
The German incumbent will decide whether to sell its share of the joint…
Deutsche Telekom is reportedly considering offloading the company’s half of UK mobile operator Everything Everywhere after failing to sell its mobile operations in the US.
The German incumbent will decide whether to sell its share of the joint venture it holds with France Telecom before the end of the year, reported Bloomberg citing sources.
Bloomberg claimed that banks had yet to be hired for the process because it is still at a very early stage.
DT and FT declined to discuss the speculation. But a spokesman for DT said: “We have a long-term commitment to our successful joint venture in the UK.”
The need for DT to raise cash has reportedly become more pressing since December, when regulators blocked the US$39bn sale of its US subsidiary T-Mobile USA to local giant AT&T.
In the fallout of this collapsed deal, reports have speculated that the company could be looking to raise billions through the issue of bonds, the sale of towers, or indeed by selling its 50% stake in Everything Everywhere.
Helping to stoke rumours of the latter has been Everything Everywhere’s shift towards operating as an independent financial entity. Early this month the group issued its first bond, placing €500m (US$659m) worth of five-year notes. This came shortly after Everything Everywhere announced its first bank facilities as an independent financial entity late last year, when it secured a revolver and a term loan for a combined £875m (US$1.39bn).
Everything Everywhere has been using the proceeds to help refinance a £1.25bn (US$1.98bn) shareholder loan that was provided by DT and FT when it was formed in 2010.
