O2 UK wants to sell shares to customers now to help pay off Telefonica debt

Do you unconditionally love or merely tolerate your wireless service provider? If the former, have you ever considered taking your devotion to the next level by investing in the company that supports your voice call, texting and on-the-go browsing addictions?

Well, if you happen to live in the post-Brexit United Kingdom (or is it the Divided Kingdom now?), you might be offered that option before long by O2. The nation’s second largest carrier, behind EE, is owned by Spanish telecommunications giant Telefonica, which forced a sale due to financial trouble.

But the European Commission blocked a previously agreed-upon merger between O2 and rival operator Three a few months ago, arguing that the ensuing conglomerate would have “reduced consumer choice.”

Telefonica found itself in a delicate spot, especially with industry uncertainty building up after the British EU referendum. Some past prospective buyers may still be interested in a bid, though a £10 billion ($13B+) stock market float could both help O2’s parent company raise a boatload of money and allow it to maintain control over the popular UK carrier.

Meanwhile, customers would “buy into the O2 brand even more”, feeling attached to it and having something to gain as the business “strategically” improves its value. Win-win?

Source: The Telegraph

Discuss This Post

Share This Post

Watch the Latest Pocketnow Videos

About The Author
Adrian Diaconescu
Adrian has had an insatiable passion for writing since he was in school and found himself writing philosophical essays about the meaning of life and the differences between light and dark beer. Later, he realized this was pretty much his only marketable skill, so he first created a personal blog (in Romanian) and then discovered his true calling, which is writing about all things tech (in English).