BT sets float date, debt load for wireless O2 company

ITworld.com |  Networking

British Telecommunications PLC (BT) will spin off its recently renamed wireless division mmO2 PLC as a separate, publicly-traded company on Nov. 19.

The demerged mmO2 will carry a debt of 500 million pounds (US$722 million), well below the 2 billion pounds of debt the wireless company had previously been expected to carry, BT said in a statement Wednesday.

The remaining assets of BT will officially be known as BT Group PLC once the demerger occurs, at which time BT shareholders will receive equal numbers of BT Group shares and mmO2 shares to replace their old holdings, BT said.

BT announced in May that as part of its effort to reduce its debt -- then standing at 29 billion pounds -- by over 9 billion pounds by March 2002, it would spin off BT Wireless as a separate company and rename the remaining segments of the company BT Future.

The new mmO2 will be worth an estimated 10 billion to 15 billion pounds and will be launched with a debt level similar to that of its rival Vodafone Group PLC, a BT spokesman said.

In comparison, Orange SA held around 2 billion pounds of debt at the time of its IPO (initial public offering) by parent company France T

Join us:
Facebook

Twitter

Pinterest

Tumblr

LinkedIn

Google+

NetworkingWhite Papers & Webcasts

Webcast On Demand

Navigating the New Wireless Landscape

Sponsor: Aerohive

Webcast On Demand

Infographic: Benefits of a Controller-less Networks

Sponsor: Aerohive

See more White Papers | Webcasts

Answers - Powered by ITworld

ITworld Answers helps you solve problems and share expertise. Ask a question or take a crack at answering the new questions below.

Ask a Question
randomness