Three snaps up tele­coms ri­val UK Broad­band in £300m deal

Belfast Telegraph - Business Telegraph - - Platform - BY STAFF RE­PORTER

MO­BILE op­er­a­tor Three UK is buy­ing tele­coms ri­val UK Broad­band in a £300m deal, nearly a year af­ter its par­ent com­pany was blocked from buy­ing O2.

The com­pany be­hind wire­less broad­band op­er­a­tor Rel­ish will be­come a fully owned sub­sidiary of Three UK, which is set to pay £250m in cash as part of the deal.

It will make a fur­ther £50m avail­able as credit to­wards a mo­bile vir­tual net­work op­er­a­tor agree­ment on Three’s net­work.

Re­ports emerged last au­tumn sug­gest­ing UK Broad­band was hold­ing talks for a na­tional agree­ment with some of the UK’S mo­bile op­er­a­tors in hopes of ex­pand­ing its net­work.

Three UK chief ex­ec­u­tive Dave Dyson said: “UK Broad­band gives us an op­por­tu­nity to ex­pand our am­bi­tion to pro­vide high-qual­ity and great value in­ter­net con­nec­tiv­ity for UK con­sumers.”

It comes months af­ter the Euro­pean Com­mis­sion for­mally blocked Three’s par­ent com­pany, CK Hutchi­son Hold­ings, from a £10.3bn takeover of O2. Hutchin­son is run by Hong Kong bil­lion­aire, Li Ka-shing.

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