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Prices & Quotes - UK Markets - TalkTalk Telecom Group (TALK)

Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Share Price:
Down 92.50p
Change Today:
-0.85p
Market Cap:
1,060.05m
Sector:
Fixed Line Telecommunications

TalkTalk to offload fibre assets in ?200m deal

By Josh White

Date: Tuesday 21 Jan 2020

LONDON (ShareCast) - (Sharecast News) - TalkTalk Telecom Group has agreed to sell its fibre assets, being FibreNation and its shareholding in Bolt Pro Tem, to CityFibre for 200m in cash, it announced on Tuesday, conditional on shareholder approval.
The FTSE 250 internet provider said it would also be repaid, up to an agreed capped amount, the increase in the amount of intercompany indebtedness between the group and the fibre assets from 15 November up to completion.

It said the sale was being underpinned by a long-term wholesale agreement with TalkTalk for residential and business products in the areas where CityFibre was building, while also allowing TalkTalk the flexibility to partner with other network providers.

TalkTalk said the sale would provide it with long-term benefits, giving it access to full fibre, delivering a superior customer experience for residential customers and businesses, and thus supporting customer retention and reducing its cost to serve.

The agreement would establish a 'Northern Centre of Excellence', the board said, and help to deliver "the next generation" of digital infrastructure throughout the North of England.

TalkTalk said it intended to use the net proceeds to strengthen its balance sheet.

It said the sale remained conditional on shareholder approval, and added that it had received commitments from shareholders holding, in total, 57.5% of its share capital to vote in favour of the sale.

Completion was expected to occur in March.

"We are pleased to announce today's agreement with CityFibre, which is good news for TalkTalk, and good news for Britain and its full fibre roll-out ambition," said chief executive officer Tristia Harrison.

"Our investment over the last five years and the excellent work delivered by the FibreNation team, combined with CityFibre's well-established platform, will support wide-geographic reach of full fibre and further drive competition in the market.

"The sale of FibreNation to CityFibre, in combination with a competitive wholesale agreement, enables us to continue our strategy to accelerate TalkTalk's fibre growth for our residential and business customers, thereby delivering a superior customer experience at an affordable price."

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

TALK Market Data

Currency UK Pounds
Price 92.50p
Change Today -0.85p
52 Week High 122.10p
52 Week Low 69.50p
Volume 2,245,887
Shares Issued 1,146.00m
Market Cap 1,060.05m

Performance Indicators

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What The Brokers Say

Strong Buy 1
Buy 0
Neutral 4
Sell 1
Strong Sell 4
Total 10
sell
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

TALK Dividends

  Latest Previous
  Final Interim
Ex-Div 09-Jul-20 28-Nov-19
Paid 07-Aug-20 16-Dec-19
Amount 1.50p 1.00p

Trades for 27-Nov-2020

Time Volume / Share Price
16:35 1,491,037 @ 92.50p
16:29 11 @ 91.75p
16:29 72 @ 91.70p
16:29 138 @ 91.70p
16:29 2 @ 91.70p

TALK Key Personnel

CEO Tristia Harrison