BT Group PLC
16 October 2002
October 16, 2002
BT SELLS CEGETEL STAKE FOR £2.5 BILLION
BT today announced that it has agreed to sell its 26 per cent stake in Cegetel
Groupe SA to Vodafone for €4.0 billion (£2.5 billion) in cash.
Sir Christopher Bland, BT's chairman, said: "This is an excellent transaction
for BT's shareholders. The price represents a return of around two and a half
times our total investment in Cegetel.
"This sale is a further significant step in the de-leveraging strategy laid out
at the time of our rights issue last year. We are now close to realising our £10
billion net debt target, giving BT one of the strongest balance sheets in the
sector. This allows BT to focus on driving our core activities forward."
BT will recognise a profit of approximately £1.4 billion on completion of the
transaction. The transaction is conditional upon relevant regulatory approvals
and is expected to complete before the end of 2002. BT was advised by Rothschild
in respect of this transaction.
Notes for Editors:
Cegetel/SFR
Cegetel is the number one alternative fixed line operator in France and holds an
80 per cent interest in SFR, France's number two mobile operator. BT acquired
its 26 per cent stake in Cegetel in 1997, and in total has invested £1.0bn to
date. BT's stake in Cegetel is carried at about £180 million in BT's balance
sheet and, for the year ending March 31, 2002, BT's share of the profits
attributable to its investment in Cegetel was £78 million after tax and minority
interests. After accounting for goodwill of £0.9 billion previously charged to
reserves, BT will recognise a profit on the sale of £1.4 billion.
The stand-still agreement which prevented an earlier disposal of BT's stake in
Cegetel expired on September 24, 2002.
SFR is the second largest mobile operator in France with in excess of 12.6
million subscribers and a 34.5 per cent market share at the end of June 2002.
Cegetel holds 80 per cent of SFR, with the remaining 20 per cent held by
Vodafone.
Inquiries about this news release should be made to the BT Group Newsroom on its
24-hour number: 020 7356 5369. From outside the UK, dial +44 20 7356 5369.
All BT group news releases can be accessed at our web site:
http://www.btplc.com/mediacentre
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