On 6 February 2017, a PCCW Group company and Three entered into a share purchase agreement for the acquisition of UK Broadband Limited by Three UK for £300 million, subject to the fulfilment, or waiver by Three of a number of conditions precedent.
The Consideration payable by Three UK under the Share Purchase Agreement is £300 million, payable as to £250 million in cash and as to the balance of £50 million by the issue of two credit vouchers in the amount of £25 million each.
The credit vouchers to be issued by Three UK can be applied against specific domestic service charges (excluding value added tax) payable under a mobile virtual network operator (MVNO) agreement pursuant to which Three UK will provide access to capacity on its mobile network. The MVNO agreement will be entered into by Three UK upon the request of the Group (or the transferee of the credit voucher).
Ronnie Preiskel led the firm’s team that advised PCCW on the two £25 million Credit Vouchers together with their related MVNO Agreements. Tim Cowen is leading the team providing competition and regulatory advice to the transaction.