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BT to buy back £200m of shares from Orange

20 June 2017 07:34

BT Group intends to buy back up to £200m of its shares from Orange.

BT issued 398,725,107 new ordinary shares to Orange in January 2016, as partial consideration for the purchase of EE.

The shares were subject to lock-up provisions which expired in January this year.

Orange yesterday announced its intention to offer approximately a third of these shares - 133 million - to institutional investors through an accelerated bookbuild.

BT said it had committed to participate in the offering and had placed an order to repurchase shares up to a maximum total value of £125m.

It said that separately, Ilford Trustees (Jersey) Limited, trustee of the BT Group Employee Share Ownership Trust had placed an order to purchase additional shares with a maximum total value of £75m from Orange which BT would fund.

BT said its orders amounted to a maximum aggregate value of £200m.

It said that Orange would allocate BT's and the employee trust's orders in full.

Last month BT announced that it expected to buy back around £100m of shares in 2017-18 to help counteract the dilutive effect of all employee share option plans maturing in the year.

This would have been below the £206m buyback BT completed in 2016-17.

BY said the repurchase would allow BT to satisfy its announced 2017-18 buyback, offsetting the dilutive effect of employee share options this year.

BT said it expected to continue to offset the dilutive effect of employee share options in future years and had therefore decided to take advantage of current market conditions and the opportunity to purchase a significant number of shares in a single transaction by participating in the offering in excess of the level previously expected for the 2017-18 buy back.

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Related Company: BT.A

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