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Telecoms

BT agrees sale of Spanish unit

The Spanish business generated revenues of roughly £230mln last year

BT Group PLC (LON:BT.A) has agreed a deal to sell its Spanish business to private equity firm Portobello Capital for an undisclosed amount.

Portobello is buying BT Spain's domestic network infrastructure and managed services business, which generated roughly €270mln (£230mln) of revenue last year.

READ: BT reportedly agrees deal to sell Spain business

The FTSE 100 group is keeping a presence in Spain to service its global customers and has agreed with Portobello a wholesale agreement to access to the domestic infrastructure in the country, with Portobello becoming a reseller of BT's global products.

"Through agreements with the Spanish business, it provides continuity to both our multinational and local customers. It also enables us to focus on what we do best: providing secure connectivity and digital solutions to multinational companies globally," said Bas Burger, chief executive officer of BT Global.

The deal, which expected to complete in the first half of 2020, is part of BT’s efforts to sell off non-core businesses, as it looks to service its massive debt pile and roll out its UK fibre broadband network.

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