Deutsche Telekom (DT) is considering selling its 12 per cent stake in UK’s BT, in a move that would see the German incumbent exiting the country’s telecoms market.
According to Reuters’ sources, the company is evaluating a sale, worth approximately £4.4 billion at current market value, and will make a final decision based on the deal Britain strikes following its vote to leave the European Union.
In the wake of the Brexit vote, many foreign companies have been evaluating their strategic investments in the UK, with questions raised over potential economic growth.
Telekom is, however, restricted by a lock agreement which means it cannot sell the stake before August 2017, unless it agrees an off market transaction with financial investors.
Deutsche Telekom became BT’s largest shareholder when the UK group bought mobile market leader EE for £12.5 billion last year, from DT and France’s Orange.
Selling the stake in BT would further allow Deutsche Telekom to focus on its US subsidiary, T-Mobile US, which has seen a resurgence in the past few years to overtake Sprint and become the country’s third largest operator.
The US operation accounts for 42 per cent of Deutsche Telekom’s total revenue, even exceeding its home market. The German operator owns 65 per cent of T-Mobile US.