Wed, 27 Sep 2023 | BUSINESS SALE
As part of its planned demerger, telecoms giant TalkTalk is reportedly set to sell off its business-to-business division. TalkTalk, which is headquartered in Salford, is preparing to split its operations into three divisions: TalkTalk Consumer; TalkTalk Business Direct and its wholesale business.
The demerger is expected to be completed by March 1 2024 and comes two years after the company was taken private by Tosca IOM, a company incorporated for the purposes of the acquisition by Toscafund and private equity firm Penta, in a deal valued at £1.1 billion.
The company has stated that the demerged companies will “focus on meeting the needs of their distinctive customer bases” and that the split will enable it to eliminate operational complexity, invest in each unit on a standalone basis and support balance sheet refinancing.
TalkTalk was initially established as the Leeds-based subsidiary of Carphone Warehouse in 2003, before subsequently being demerged as a standalone business in March 2010 and listed on the London Stock Exchange, where it remained until it was taken private in 2021.
The company’s B2B division was previously linked with a £175 million sale to Lancashire-based B2B IT, communications and cloud services provider Daisy Group. Possible suitors ahead of the proposed sale of the division, which was recently valued at around £150 million, include Daisy Group and Sky.
TalkTalk has said that its planned demerger will lead to a “limited number” of redundancies, with reports indicating that the potential sale of the B2B business could lead to around 50 redundancies at the division.
In the group’s most recent financial accounts, for the year ending February 28 2022, it reported turnover of £1.4 billion, but fell to a pre-tax loss of around £86 million. Earlier this month, the company secured a £75 million facility from US investment firm KKR.
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