EE’s owners have given the UK mobile operator six months to better position the business so they can look again at potentially launching an IPO.
Gervais Pellissier, head of Europe for France’s Orange, which owns half of EE with Deutsche Telekom of…
EE’s owners have given the UK mobile operator six months to better position the business so they can look again at potentially launching an IPO.
Gervais Pellissier, head of Europe for France’s Orange, which owns half of EE with Deutsche Telekom of Germany, said an IPO is the preferred option but it will depend on its rivals’ strategies.
He told reporters in Paris that EE CEO Olaf Swantee has been asked to position it over the summer to either be a dividend story or a growth story.
EE’s IPO was put on ice in January to give it time to roll out 4G across the country and build on its first mover advantage for the services.
Its owners had been carrying out a strategic review on floating around 30% in 2014, with some analysts estimating at the time that the move could value the group at more than £10bn (US$17bn.)
Orange had reportedly appointed Morgan Stanley and BofA Merrill Lynch for advice on the potential IPO, with Deutsche Telekom hiring JP Morgan.
The decision to shelve it surprised many in the City because it came as a surge of investor interest in UK listings was in full swing.
The market has since turned sour, with some companies choosing to hold off from floating as a number of new listings trade below their float price.
