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The demerger
of mmO2,
the group’s former mobile phone
business, was completed in November 2001. The demerger, scheme of
arrangement and associated reduction in capital were approved by
shareholders in October 2001 and the High Court in November 2001.
The demerger of mmO2
created two new listed
companies and dealings in BT Group and mmO2
shares commenced on 19 November
2001. BT shareholders on record on 16 November 2001, received one
BT Group plc share and one mmO2
plc
share for each existing British Telecommunications plc share held.
Based on the first day’s dealings on the London Stock Exchange,
BT Group represented approximately 78% of the equity value of the
former BT group and mmO2
represented approximately 22%.
On
the demerger, net assets of £19,490 million attributable
to mmO2 were distributed to shareholders in
the form of a demerger distribution. mmO2
assumed approximately £500 million
of debt, with the bulk of the outstanding debt remaining with the
continuing BT Group. The reduction of capital had the effect of
increasing distributable reserves in BT Group plc by £9,537 million. |
