Telefonica He terminated the agreement with Liberty Global To join their UK business (O2 s virgin) And the figure A “joint venture” is 50% owned by both companies Once the relevant regulatory approvals are obtained, the necessary recapitalization operations are executed and the remaining agreed conditions are fulfilled to close the aforementioned deal. Will be called “joint venture” VMED O2 UK Ltd.
Telefonica He said that establishing this “joint venture” It brings “very great value” to the company From a business and financial perspective, funds of £ 5.5 billion, of which £ 2.7 billion corresponds to Liberty Global’s cash payments to Telefónica to offset participation in the joint venture and £ 2.8 billion corresponds to total funds from recapitalization.
Deal Reduces Telefónica’s net debt by 5,000 million euros.
O2 You will contribute to the annual income that was in the last year 5,962 million pounds (6,900 million euros) And one Customer base of over 27 million mobile accesses At the end of the last quarter.
For its part, Virgin Media has added more than 30,000 new customers and adds Six million customers Of fixed services and more than 3.5 million mobile phone customers and closed the year 2020 with 5,129 million pounds (5,965 million euros).
The joint venture plans to invest 10 billion pounds in the next five years In infrastructure (11,628 million euros).
Telefonica It will save O2 debt free Virgin Media will pump 11.3 billion pounds (13.142 million euros) into the liability group. The new entity will be led by A. A board made up of equal parts by the directors of Telefónica and Virgin Media With Virgin Lutz Schüler CEO as CEO.
On the part of the Spanish company they will sit in this body Patricia Cobian, Chief Financial Officer; Adrian de Meo, Director of Media; Enrique Medina, responsible for the legal department; Gareth Turpin, Commercial Director, Mobiles and Services; Joe Bertram, Chief Commercial Officer for Companies and Business, and Nicolas Green, who will be responsible for communications and corporate affairs.
The last years of O2
In the past five years, the British subsidiary of Telefónica has grown to prominence The mobile network with the most hits in 2017A position he has not left since then.
Telefónica has a file The 5G network covers more than 180 countries and cities, and the 4G network is present in 19,230 locations And in full expansion thanks to an agreement with Three and Vodafone to improve mobile phone coverage across the country, especially in rural areas, with the goal of reaching 95% of Britons in 2026.
On the horizon, the company also plans to be the first British telecom operator to achieve an emissions-free mobile network this year.