BT Group PLC (LON:BT.L) has sold its fleet management business to free up cash as part of an ongoing “transformation” plan to cut £1.5bn in overheads.
The formerly state-owned telecoms group launched BT Fleet Solutions in 2002 and it currently manages more than 80,000 vehicles including around 35,000 of BT’s own fleet, employing around 950 staff around the UK.
European investor Aurelius Group completed the purchase on Monday for an undisclosed sum, with plans to “carve-out” the fleet from BT ahead of a full rebrand within the next twelve months.
The divestment of Fleet Solutions, which made revenues of £209.5mln last year, aligns with BT's ongoing transformation programme and strategy of focused investments in both its fixed and mobile networks with its full fibre and 5G networks.
Telecom troubles
The troubled FTSE 100 group reported cash flow dropped by 36% year-on-year to £323mln in its last quarter as costs of the roll-out of its high-speed Openreach broadband combined with a consumer market that is “significantly more competitive and aggressive than last year”.
BT’s heavy-going programme to restructure its business was announced last year with plans to cut 13,000 employees and 90% of its real estate, including the recent sale of its London headquarters for £210mln as it relocated for the first time in 150 years.
Since then, it has been reported that BT is looking to sell off £100mln worth of towers and cables in the Netherlands, as well as talking with London-based Mayfair Equity Partners to potentially offload its Irish corporate business for €300mln.
The telecommunications company also admitted that future dividend pay-outs may be reduced.
Aurelius sees more UK break-up opportunities ahead
Aurelius’ chief executive Dirk Markus said: "We see substantial growth potential for BT Fleet in the British market."
The investment group specialises in divestment processes and Markus noted that “special opportunities” due to “Brexit and the related uncertainty” have made the UK an attractive market.