EE considering stock market flotation
T-Mobile and Orange, the joint owners of the EE mobile network, are reportedly considering making an initial public offering (IPO) on EE, according to computing moving EE from being a privately owned company to a publicly held one.
Gervais Pellissier, Chief Executive Officer Delegate at Orange told reporters that EE CEO Olaf Swantee has been asked to “position EE either on dividend or return or growth” to prepare the company for possible flotation. He added that the decision as to whether or not to float the company will be made after the summer “when we return from vacation.”
It’s news that isn’t entirely surprising, as the idea was previously proposed during a strategic review back in early 2013, but it was a suggestion that had seemingly been tabled until now.
Apparently Orange and T-Mobile are reconsidering it now because the changing nature of the market means that competitors are starting to offer bundle packages which include not just a mobile contract, but also home broadband and television subscriptions, which is affecting EE’s customer base as the network can’t currently compete in those areas.
Whether that means EE itself will start offering similar services remains to be seen, but an Initial Public Offering could bring in some much needed investment and improve EE’s prospects.
By the sounds of things no decision is going to be made regarding EE’s future for at least the next few months, but stay tuned and we’ll be sure to bring you any updates as soon as we hear them.