Posts Tagged ‘mmO2’
BT publishes the demerger documentation - posting to BT shareholders begins today
BT today published documents relating to proposals for the demerger of its mobile business, mmO2, and the creation of two new holding companies. Posting of some of these documents, including a shareholder circular describing the proposals to BT shareholders, will also begin today.
The demerger forms part of BT’s restructuring strategy which was first announced on May 10, 2001.
If approved, two holding companies, BT Group plc and mmO2 plc, will be created. BT Group will comprise principally four separately managed lines of business - BT Retail, BT Wholesale, BTopenworld, and BT Ignite - together with its Concert joint venture. mmO2 plc will be made up of BT Cellnet, Digifone (formerly known as Esat Digifone), Telfort Mobiel, Viag Interkom, Manx Telecom and Genie.
Sir Christopher Bland, chairman of BT, said: “BT shareholders will soon be receiving details of the demerger, giving them the information necessary to make an informed decision on the best way forward. It is important that shareholders use their vote and I am confident they will do so to support the demerger proposals, creating BT Group plc and mmO2 plc.
“BT Group’s aim going forward will be to create value; value based on service excellence, brand leadership, large scale networks and our extensive customer base. We will also develop and market new, higher value broadband and Internet products and services.”
David Varney, chairman of mmO2 plc, said: “This is an important day for us - it marks another milestone in the birth of mmO2, a business which will continue to be a leading player in the European mobile industry. We are committed to creating shareholder value as a member of the FTSE 100 by tight management focus, growing our wholly owned businesses and continuing our leadership in mobile data.”
Shareholder approval is being sought to implement the proposals at two meetings, a Court Meeting and an Extraordinary General Meeting (EGM). Notices convening these meetings, to be held in Hall 5 at the NEC, Birmingham, on October 23, 2001, are set out in the shareholder circular. BT shareholders can vote on the proposals by signing and completing the forms of proxy sent to them, and returning them either by post or fax. Shareholders can also vote by appointing a proxy, by using the Internet or by telephone, or by attending the meeting.
If the proposals are implemented as expected, the Scheme is expected to become effective on November 16, 2001, the demerger will become effective on November 19, 2001 and trading in both the BT Group plc shares and mmO2 plc shares will commence on November 19, 2001.
Notes for Editors
BT Group plc
BT Group plc will comprise principally four separately managed lines of business - BT Retail, BT Wholesale, BTopenworld, and BT Ignite - together with its Concert joint venture. BT Retail and BT Wholesale are well established, cash generative businesses with market leading positions in the UK, while BTopenworld and BT Ignite are rapidly developing businesses, active in the markets for Internet and data services, solutions and broadband.
BT Retail
BT Retail is the UK’s largest communications service provider, by market share, to residential and business markets. As at June 30, 2001, BT Retail provided 28.2 million customer lines (exchange line connections) equating to a UK market share of approximately 83 per cent. Some nine million of these were business lines and lines for other service providers. In the opinion of the directors, BT’s relationship with its customer base represents a major strength and it is the directors’ intention to broaden the range of services offered by BT Group, in order to reinforce this relationship.
BT Wholesale
BT Wholesale has the largest capacity network in the UK with the greatest geographical reach and customer coverage. BT Wholesale provides network services and solutions within the UK to communications companies, network operators and service providers. BT Wholesale aims to reduce its dependence on its regulated business and grow its sales to other communications companies. Its strategy is to provide total customer solutions, broaden its customer base, build and develop relationships with other parts of BT Group, other network operators and major communication suppliers, and establish a reputation for outstanding service delivery. Its investment strategy will satisfy demand for bandwidth and apply new technology to boost capacity, provide the platform for next generation products and services and reduce costs.
BTopenworld
BTopenworld brings together in a single business all of BT’s mass market ISPs and Internet-related activities. It serves consumers and SMEs in the UK with a range of narrowband and broadband Internet access and related services. BTopenworld aims to generate additional revenues for the Group by providing customers with services that add value to the basic telephony service, earning subscription and advertising and e-commerce revenues.
BT Ignite
BT Ignite is BT’s international, datacentric solutions and broadband IP business. It has established a strong European footprint, serving business customers with 52,000 route kilometres of fibre connecting 250 cities and 22 content hosting centres. BT Ignite delivers a range of services, including customer solutions, application service packages, web hosting, media services and data transport. BT Ignite plans to continue to build its revenues from the high end of the value chain. Value-added services, complex business solutions, hosting and media distribution currently represent over 60 per cent of BT Ignite’s turnover.
Recent developments
BT is continuing discussions with AT&T concerning the future of the Concert joint venture. Options currently being considered include unwinding the Concert joint venture. Other strategic alternatives to Concert are still being discussed, including continuation of the venture in a modified form. In the event that an unwinding of the Concert joint venture is agreed, and depending on the way that it is implemented, the financial effects on the Group are likely to include cash and non-cash restructuring costs which could be substantial. These discussions are dealt with in more detail in the shareholder circular.
In addition, BT expects to take an impairment charge against certain of its other investments, including AT&T Canada, in its half year results to 30 September 2001, totalling approximately £500 million. BT’s investment in AT&T Canada is discussed in more detail in the shareholder circular.
BT expects to complete a sale and leaseback property transaction by 31 December 2001, under which it expects to receive proceeds of approximately £2.3 billion. The Board now expects to reduce net debt to between £15 billion and £17 billion at 31 March 2002 on the assumption that the property sale and leaseback transaction has been completed.
Dividends
The Board has decided that there will be no interim dividend for the year ending 31 March 2002. The board of BT Group plc expects to recommend a final dividend for the BT Group in respect of the year ending 31 March 2002 and to resume regular dividend payments thereafter. However, the level of dividends which BT Group expects to pay is likely to be substantially lower than that paid by BT previously.
mmO2 plc
mmO2 plc will be made up of BT Cellnet, Digifone (formerly known as Esat Digifone), Telfort Mobiel, Viag Interkom, Manx Telecom and Genie. It is a leading player in the European mobile market and is expected to be a member of the FTSE 100 in the UK. The company has a strong European footprint of wholly owned businesses comprising established mobile operations in the UK and Ireland, and rapidly growing businesses in Germany and the Netherlands.
mmO2 plc serves more than 16 million mobile customers in the UK, Germany, Ireland, the Netherlands and the Isle of Man. Together, these markets represent a total population of more than 160 million people. mmO2 plc is a leader in mobile data and Internet in Europe and is well positioned for GPRS and UMTS success. Genie, its mobile Internet portal, is already one of the leading mobile Internet businesses in Europe. mmO2’s strategy is to:
- increase its market share of higher value customers, especially business and high usage individuals and young adults, who have been early adopters of data services
- achieve competitive scale in Germany and the Netherlands
- focus on customer retention through good customer service and network quality
- reduce costs by tight budgetary control and innovative measures, such as the recently announced, network sharing deal with T-Mobile in Germany and One2One in the UK
- exploit opportunities for performance improvement by integration across mmO2 plc, helped by the focus of the new O2 brand.
mmO2 plc has an experienced management team and its growth will be underpinned by its financial flexibility, carrying approximately £500 million of net debt on demerger, and having a funding facility of £3.5 billion to finance the development of its business.
Further information on the demerger
price. Both BT Group shares and mmO2 shares will be traded on the London Stock Exchange and their ADSs will be traded on the New York Stock Exchange. No application is being made for either BT Group shares or mmO2 shares to be listed in Japan.
The Court Meeting, which will be held at the direction of the Court, has been convened for 10.30 am on October 23, 2001 to enable BT shareholders to vote on the Scheme of Arrangement (”Scheme”).
EGM
The EGM, to be held immediately following the end of the Court Meeting, is being convened to ask BT shareholders to consider resolutions to give effect to the Scheme and approve the demerger. BT shareholders will also be asked to approve the mmO2 share schemes. Shareholder approval is not being sought for the BT Group share schemes since they are substantially the same as the BT share schemes for which approval has already been obtained where required.
The proposals include a capital reduction in BT Group plc, following the demerger, in order to increase the level of reserves available for future distributions to shareholders or to facilitate future transactions. Shareholders will be asked to approve this at the EGM and the Court will be asked to confirm the reduction on November 20,2001 (to take effect on November 21, 2001).
Tax
For the purposes of UK taxation of capital gains (”CGT”), the Scheme should constitute a scheme of reconstruction. Clearance has been obtained from the Inland Revenue in respect of the Scheme under section 138 of the Taxation of Chargeable Gains Act 1992 (”TCGA”). Accordingly, a BT shareholder will not be treated as making a disposal for CGT purposes of his BT shares as a result of receiving mmO2 shares under the Scheme, and so no chargeable gain or allowable loss will arise on the cancellation of BT shares and the issue of mmO2 shares to him or her. Such mmO2 shares will be treated as the same asset as the BT shares, acquired on the same date and for the same consideration as the BT shares were acquired.
Clearance has been obtained from the Inland Revenue under section 138 TCGA in respect of the demerger. Accordingly, a holder of mmO2 shares will not be treated as making a disposal for CGT purposes when he or she receives BT Group shares pursuant to the demerger. Any gain or loss which would otherwise have arisen on a part disposal of mmO2 shares will be “rolled over” into the BT Group shares received by the shareholder pursuant to the demerger. Such BT Group shares will be treated as the same asset as the mmO2 shares, acquired on the same date and for the same consideration as the mmO2 shares were acquired. Accordingly, following the Scheme and the demerger, a shareholder’s original base cost in his/her BT shares will be apportioned between his/her mmO2 shares and his/her BT Group shares by reference to the market quotations of the mmO2 shares and the BT Group shares on the first day of dealings in such shares as derived from the Official List.
Shareholder Helpline
A shareholder helpline has been set up on Freefone 0808 100 4141. This operates between 8.30 am and 8.30 pm, Monday to Friday, and 10.00 am to 4.30 pm on Saturdays, Sundays and UK public holidays. For legal reasons the helpline will not be able to provide advice on the merits of BT’s proposals or to provide financial advice.
The contents of this press announcement, which has been issued by, and is the sole responsibility of, British Telecommunications public limited company, has been approved by Cazenove & Co. Ltd which is regulated in the UK by The Securities and Futures Authority, solely for the purposes of Section 57 of the Financial Services Act 1986. Prices and values of, and income from, shares may go down as well as up and an investor may not get back the amount invested. It should be noted that past performance is no guide to future performance. Persons needing advice should consult an independent financial adviser.
mmO2 and T-Mobile sign 3G network roll-out co-operation agreement
mmO2 and T-Mobile International today announced that they have signed binding agreements to co-operate on the roll-out of third generation (3G) mobile networks between their operating subsidiaries in the UK and Germany.
mmO2 and T-Mobile International announced their intention to co-operate on June 12 this year. The final binding agreements between BT Cellnet and One2One in the UK and T-Mobile and VIAG Interkom in Germany were signed on September 20.
Over the past few months both parties have been working extensively to finalise the operational, technical and commercial details of the agreements. This agreement is expected to deliver up to 30 per cent cost savings over 10 years to mmO2 on capital expenditure relating to 3G network build.
Peter Erskine, chief executive officer, mmO2, said: “Today’s announcement is another important development for mmO2. We are now in a position to move into the implementation phase and focus on driving forward our 3G network roll-out plans in Germany and UK. This exciting agreement should lead to substantial cost-savings, faster network coverage for us in Germany, and the additional benefit of reducing the number of cell sites needing to be deployed in both countries for 3G.”
Kai-Uwe Ricke, Board Member of Deutsche Telekom for Mobile and Online and chief executive officer of T-Mobile International, said: “The speed with which we have reached agreement on these detailed technological and operational points indicates the spirit of co-operation we have established on this issue. Reaching this point means both groups can start to realise a more cost effective 3G network construction in two of the most advanced markets for mobile services in the world.”
Notes to Editors
The network roll-out co-operation deal remains subject to any necessary regulatory approvals.
Following the proposed demerger from BT, mmO2 will have wholly owned operations in the UK (BT Cellnet), Germany (VIAG Interkom), The Netherlands (Telfort), the Republic of Ireland (Digifone) and the Isle of Man (Manx Telecom) and will also include Genie, a leading mobile internet portal.
Following its proposed demerger from BT, mmO2 will own third generation licences to operate 3G mobile services in the UK, Germany and the Netherlands - all territories where its operating companies have already introduced GPRS services. mmO2 expects its Irish subsidiary to apply for a 3G licence in Ireland when the application process commences.
mmO2 is the holding company of the mmO2 group of companies and O2 will be the brand of the customer facing businesses of mmO2 plc.
This press announcement, which has been prepared by and is the sole responsibility of mmO2 plc, has been approved solely for the purposes of section 57 of the Financial Services Act 1986 by Merrill Lynch International, Morgan Stanley & Co. International Limited and Schroder Salomon Smith Barney which are regulated in the UK by The Securities and Futures Authority Limited.
Merrill Lynch International, Morgan Stanley & Co. International Limited and Schroder Salomon Smith Barney are advising mmO2 plc and British Telecommunications plc in relation to the proposed demerger and no-one else and will not be responsible to anyone other than mmO2 plc and British Telecommunications plc for providing the protections afforded to the customers of Merrill Lynch International, Morgan Stanley & Co. International Limited and Schroder Salomon Smith Barney in relation to the proposed demerger.
Schroder Salomon Smith Barney is the trading name of Salomon Brothers International Limited. Schroder is a trademark of Schroders Holdings plc and is used under licence by Salomon Brothers International Limited.
This announcement does not constitute, or form part of an offer, or solicitation of an offer, to purchase or subscribe securities.
mmO2 appoints Director of Communications, Head of Investor Relations and Head of Finance
mmO2, the mobile media business due to be demerged from BT, today announced three further appointments - a Director of Corporate Communications, a Head of Investor Relations and a Head of Finance. Richard Poston takes on the role of Director of Communications effective from 10th September 10, 2001, reporting to mmO2 Chief Executive Officer, Peter Erskine. David Boyd, will take on the role of Head of Investor Relations, starting later this month, reporting to Chief Finance Officer, David Finch. Ronan Dunne is also joining as Head of Finance for mmO2 effective immediately. He will also report to David Finch.
Richard Poston, was formerly the Director of Communications for TI Group plc. He was a member of TI Group’s executive board reporting to the Chairman and Chief Executive and was responsible for increasing the awareness and reputation of the company on an international basis. Prior to this role, Richard was Director of Corporate Communications at Racal Electronics plc from 1994 to 1999. Over this period Richard was responsible for managing an in-house team to deliver effective communications during the successful growth of Racal Telecom and the foundation and launch of Camelot, the National Lottery operator. Richard has 15 years experience in the communications industry, with particular expertise in investor relations, financial public relations and public affairs.
David Boyd, was formerly Head of Investor Relations at J.Sainsbury plc. Prior to this, he held a senior commercial role at BG Group plc. He was previously Head of Investor Relations at BG Group for three years following the British Gas demerger in 1997, and was responsible for developing and implementing the new company’s investor communication programme. David has significant experience working with both the UK and the international investment communities.
Ronan Dunne will have specific responsibility for the Treasury and Financial Planning and Analysis functions. Ronan, joins mmO2 from Exel plc where he was Head of Strategic Finance and Integration, having previously held the position of Director of Treasury. Previously, he held senior management positions at Waste Management International plc and Banque Nationale de Paris. Ronan brings broad-based financial experience gained from both the corporate and financial sectors.
Peter Erskine, Chief Executive Officer, mmO2, said: “I am very pleased to welcome Richard Poston and David Boyd to mmO2. Richard and David both have substantial experience in communications to media and investors and will be invaluable to us as we move forward as a demerged company and continue with our aim to be a leading player in the international mobile media market.”
David Finch, Chief Finance Officer for mmO2, said: ” I am happy to welcome Ronan to the finance department. He brings with him a wealth of experience that will help to set a strong strategic financial framework for the business.”
Notes to Editors
Following the planned demerger from BT, mmO2 will have wholly owned operations in the UK (BT Cellnet), Germany (VIAG Interkom), The Netherlands (Telfort), the Republic of Ireland (Esat Digifone) and the Isle of Man (Manx Telecom) and will also include Genie, which is one of Europe’s leading mobile internet businesses.
Following its proposed demerger from BT, mmO2 will own third generation licences to operate 3G mobile services in the UK, Germany and the Netherlands - all territories where its operating companies have already launched GPRS services. mmO2 expects to apply for a 3G licence in Ireland when the application process commences.
mmO2 plc applies to the holding company and O2 will be the brand of the customer facing businesses of mmO2 plc.
This press announcement, which has been prepared by and is the sole responsibility of mmO2 limited, has been approved solely for the purposes of section 57 of the Financial Services Act 1986 by Merrill Lynch International, Morgan Stanley & Co. International Limited and Salomon Brothers International Limited which are regulated in the UK by The Securities and Futures Authority Limited.
Merrill Lynch International, Morgan Stanley & Co. International Limited and Salomon Brothers International Limited are advising mmO2 limited and British Telecommunications plc in relation to the proposed demerger and no-one else and will not be responsible to anyone other than mmO2 limited and British Telecommunications plc for providing the protections afforded to the customers of Merrill Lynch International, Morgan Stanley & Co. International Limited and Salomon Brothers International Limited in relation to the proposed demerger.
This announcement does not constitute, or form part of an offer, or solicitation of an offer, to purchase or subscribe securities.
mmO2 strengthens its Board with further non-executive appointments
mmO2, the mobile business of BT, today announces the appointment of two new non-executive directors to its Board. Neelie Kroes was appointed on 31st August and Stephen Hodge will take his seat with effect from 1st October 2001.
They will join David Varney, Chairman, Peter Erskine, Chief Executive Officer and David Finch, Chief Financial Officer on the Board, along with the other non-executive directors Paul Myners and deputy chairman Andrew Sukawaty.
Neelie Kroes, 60, is an experienced stateswoman who has built an impressive political career. At the age of 36 she became Secretary of State for Transport and Public Works in The Netherlands and served two periods as a Cabinet Minister. During these years she handled the privatisation of the Dutch PTT, which became the example for privatisation of state owned activities in The Netherlands. She has written papers and conducted several studies for the European Commission on regulatory affairs, employment and economic issues. Neelie currently holds other non-executive board positions with a number of national and international companies.
Stephen Hodge, 59, is currently Director of Finance of the Royal Dutch/ Shell Group where he is responsible for all the financial and investor relations issues for the Group and its Parent Companies. Stephen retires from Shell on 30th September after more than 25 years with the Group. He has an extensive knowledge of the financial management of international companies, having worked throughout the world including Australia, The Netherlands, Venezuela, and Argentina in a variety of financial positions. Stephen will chair the mmO2 audit committee.
David Varney, recently appointed Chairman-designate of mmO2 said: “We are very pleased that Neelie and Stephen are joining the mmO2 board. The breadth of their experience will contribute significantly to the development of mmO2 and demonstrates the pan European nature of our company.”
Notes to Editors
Following its demerger from BT, mmO2 will have wholly owned operations in the UK (BT Cellnet), Germany (VIAG Interkom), The Netherlands (Telfort), the Republic of Ireland (Esat Digifone) and the Isle of Man (Manx Telecom) and will also include Genie, which is one of Europe’s leading mobile internet businesses.
Following its demerger from BT, mmO2 will own third generation licences to operate 3G mobile services in the UK, Germany and the Netherlands - all territories where its operating companies have already launched GPRS services. mmO2 expects to apply for a 3G licence in Ireland when the application process commences.
mmO2 plc applies to the holding company and O2 will be the brand of the customer facing businesses of mmO2 plc.
This press announcement, which has been prepared by and is the sole responsibility of mmO2 limited, has been approved solely for the purposes of section 57 of the Financial Services Act 1986 by Merrill Lynch International, Morgan Stanley & Co. International Limited and Salomon Brothers International Limited which are regulated in the UK by The Securities and Futures Authority Limited.
Merrill Lynch International, Morgan Stanley & Co. International Limited and Salomon Brothers International Limited are advising mmO2 limited and British Telecommunications plc in relation to the proposed demerger and no-one else and will not be responsible to anyone other than mmO2 limited and British Telecommunications plc for providing the protections afforded to the customers of Merrill Lynch International, Morgan Stanley & Co. International Limited and Salomon Brothers International Limited in relation to the proposed demerger.
This announcement does not constitute, or form part of an offer, or solicitation of an offer, to purchase or subscribe securities.
Rudolf Groger named as CEO of Viag Interkom
Rudolf Groger has been appointed as Chief Executive Officer of VIAG Interkom, mmO2 plc’s German business, it was announced today. He will take over from Keith Cornell, mmO2 plc’s European President who has been acting Chief Executive Officer since May 2001, and will be responsible for continuing the implementation of VIAG Interkom’s strategy in Germany. Rudolf will take up his responsibilities with effect from Monday October 1, 2001. Keith will return to his position as mmO2 plc’s European President.
Rudolf is currently Managing Director of T-Systems GmbH, Europe’s second-largest systems house, and one of the four core activities of Deutsche Telekom. Rudolf is also member of the board of Debis Systemhaus GmbH, the joint venture between Deutsche Telekom and DaimlerChrysler.
Peter Erskine, Chief Executive Officer of mmO2 plc, said: “We are delighted that Rudolf is joining us. He has an impressive track record, having made a major contribution in building up the systems and solutions group of Deutsche Telekom, and has a thorough knowledge of the telecoms industry in Germany. We are confident that he will play a pivotal role in the future of VIAG Interkom.”
Rudolf has worked for Deutsche Telekom since 1999. Before heading up T-Systems, Rudolf played a key role in the acquisition of Debis Systemhaus GmbH and its integration into Deutsche Telekom. Previously he worked for Siemens and was head of its German Information and Communication Product operations.
Notes to Editors
VIAG Interkom VIAG Interkom is a wholly-owned subsidiary of mmO2 plc. Since launching mobile services in October 1998, VIAG Interkom has achieved an estimated market share of approximately 7.2 per cent with over 3.4 million customers.
mmO2 plc BT Wireless, the mobile business of BT, announced today that the new customer brand for the business will be O2. The holding company name will be changed to mmO2 plc effective immediately, and upon demerger from BT planned for later this year the ordinary shares will be listed under this new name. O2 will be the brand of the customer facing businesses of mmO2 plc.
mmO2 plc has wholly-owned operations in the UK (BT Cellnet), Germany (VIAG Interkom), The Netherlands (Telfort), the Republic of Ireland (Esat Digifone) and the Isle of Man (Manx Telecom). mmO2 plc also includes Genie, which is one of Europe’s leading mobile internet businesses. mmO2 plc owns third generation licences to operate 3G mobile services in the UK, Germany and the Netherlands - all territories where it has already launched GPRS services. We expect to apply for a 3G license in Ireland when the application process commences.
This press announcement, which has been prepared by and is the sole responsibility of mmO2 plc, has been approved solely for the purposes of section 57 of the Financial Services Act 1986 by Merrill Lynch International, Morgan Stanley & Co. International Limited and Salomon Brothers International Limited which are regulated in the UK by The Securities and Futures Authority Limited.
Merrill Lynch International, Morgan Stanley & Co. International Limited and Salomon Brothers International Limited are advising mmO2 plc and British Telecommunications plc in relation to the proposed demerger and no-one else and will not be responsible to anyone other than mmO2 plc and British Telecommunications plc for providing the protections afforded to the customers of Merrill Lynch International, Morgan Stanley & Co. International Limited and Salomon Brothers International Limited in relation to the proposed demerger.
This announcement does not constitute, or form part of an offer, or solicitation of an offer, to purchase or subscribe securities.