BT PLC (LON:BT.A) has reportedly decided to sell its cable-making division in a bid to streamline the business amid rising costs.
The telecoms giant is understood to have appointed investment bank Greenhill to handle the sale of BT Cables, the Daily Telegraph reported.BT Cables is the Manchester-based unit within BT Wholesale that supplies the group’s network subsidiary Openreach with fibre-optic and copper cables.
READ: BT's Openreach to connect fibre broadband into 3mln premises by 2020
BT bought the business from administrators in 2012 after the previous owner, B3 industries, collapsed with debts of more than £30mln.
At the time, BT wanted to ensure that it could continue to buy new cables to carry out broadband upgrades.
Openreach is planning to replace ageing copper lines with fibre optics for three million premises by the end of 2020 in an effort to improve internet speeds across Britain.
However, BT wants to focus on its main businesses following a series of disasters, including an accounting fraud in its Italy business.
READ: BT's quarterly profits fall as costs continue to rise but full year guidance unchanged
The accounting scandal prompted an internal review, which is expected to lead to a number of asset disposals and mergers of business units this year.
The company is expected to sell overseas networks this year as it shifts its telecoms services for international corporate customers online.
BT has been tackling rising costs associated with securing broadcasting rights for sporting events, pension payments and investments. Higher costs dragged profits down 2% to £1.83bn in the third quarter to December 31.