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TalkTalk to sell off FibreNation in £200mln deal

The proceeds of the sale to digital infrastructure group CityFibre will be used to shore up the telecoms group's balance sheet

Talktalk Telecom Group PLC - TalkTalk to sell off FibreNation in £200mln deal

Talktalk Telecom Group PLC (LON:TALK) has agreed to sell off its FibreNation internet business and its stake in broadband company Bolt Pro Tem to digital infrastructure group CityFibre for £200mln.

The FTSE 250 telecoms group said the deal, to conclude in March, will establish a Northern Centre of Excellence to deliver digital infrastructure to the North of England, while the proceeds will be used to strengthen its balance sheet.

READ: Berenberg says TalkTalk "weak and not cheap" as it starts coverage with ‘sell’

The sale is also underpinned by a long-term wholesale agreement for TalkTalk to provide its products in areas where CityFibre builds its internet infrastructure, which the firm says will support customer retention and reduce costs.

Chief executive Tristia Harrison said the sale and wholesale agreement "enables us to continue our strategy to accelerate TalkTalk's fibre growth for our residential and business customers".

In early trading on Tuesday, TalkTalk's shares edged up 0.5% to 115p.

--Adds share price--

Quick facts: Talktalk Telecom Group PLC

Price: 114.3761 GBX

LSE:TALK
Market: LSE
Market Cap: £1.31 billion
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