BT said on Thursday it would raise 1 billion pounds ($1.5 billion) through a placing of new shares to fund its 12.5 billion pounds ($19 billion) acquisition of mobile operator EE.
The group, the country's biggest fixed-line telecoms provider, had spent the last few weeks in exclusive talks with the owners of EE, Orange and Deutsche Telekom, about a deal.
BT said on Thursday it would fund the cash and shares deal through new debt and the placing. Following the transaction, Deutsche will hold a 12 percent stake in BT and Orange will hold a 4 percent stake.
"This is a major milestone for BT as it will allow us to accelerate our mobility plans and increase our investment in them," BT Chief Executive Gavin Patterson said.