British Telecommunications PLC
14 January 2000
British Telecommunications plc
and
Telenor AS
British Telecommunications plc ('BT') and Telenor AS
('Telenor') announce that they have reached agreement on
their future relationship with regard to Esat Telecom
Group plc ('Esat') and Esat Digifone Limited ('Esat
Digifone'). The agreement, which will come into effect
upon BT's offer for Esat becoming unconditional and after
any applicable regulatory consents, will provide that:
(a) Telenor will have the right to exchange its 49.5 per
cent. shareholding in Esat Digifone for a 33 per cent.
shareholding in Esat;
(b) subject to this right being exercised by Telenor,
Telenor will have the additional right to purchase from
BT such shares in Esat as will result in Telenor having
49.99 per cent. in Esat at a total price of $624m (plus
interest until exercise). BT will retain rights of
control of Esat and (among other rights) have the right
to appoint the Chairman of Esat; and
(c) in the event that Telenor does not exercise the
right referred to in (a) above, Telenor will sell to Esat
its 49.5 per cent. shareholding in Esat Digifone for a
consideration of US$1,237.5 million.
Commenting on this agreement, Sir Peter Bonfield, chief
executive of BT, said:
'We are delighted to have reached this agreement with
Telenor and we look forward to building further on the
excellent working relationship we have with them.'
Tormod Hermansen, chief executive of Telenor, said:
'We are very satisfied with this outcome. We have
achieved our objective of being able to extend our strong
position in Ireland and we are delighted to be working
with BT to achieve this.'
Press enquiries
BT Jonathan +44 207 356 5369
Moggridge
Telenor Terje Thon +47 22 77 76 26
Morten Karlsen +47 22 77 99 14
Sorby
N M Rothschild & Nigel Higgins +44 207 280 5000
Sons Limited Tony Allen +44 207 280 5000
Matthew Metcalfe +44 207 280 5000
HSBC Richard Tolkien +44 207 336 9000
Desmond Connor +44 207 336 9000
Wasserstein Howard Covington +44 207 446 8000
Perella
N M Rothschild & Sons Limited, which is regulated in the
United Kingdom by the Securities and Futures Authority
Limited, is acting for BT and will not be responsible to
anyone other than BT for providing the protections
afforded to customers of N M Rothschild & Sons Limited or
for providing advice on any matters referred to in this
announcement.
Each of HSBC Investment Bank plc and Wasserstein Perella
& Co., which are regulated in the United Kingdom by the
Securities and Futures Authority Limited, are acting for
Telenor AS and will not be responsible to anyone other
than Telenor AS for providing the protections afforded to
customers of HSBC and Wasserstein Perella & Co or for
providing advice on any matters referred to in this
announcement.
The Directors of BT accept responsibility for the
information contained in this Press Announcement and to
the best of the knowledge and belief of the Directors of
BT (who have taken all reasonable care to ensure that
such is the case) the information contained in this Press
Announcement is in accordance with the facts and does not
omit anything likely to affect the import of such
information.
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