Spice to sell telecoms business to private equity firm for £32.8m

Siatel Holdings, backed by private equity firm Gresham, has conditionally agreed to buy the business.

The acquisition includes 7.3m of debt and other liabilities. Spice said it would use 25.5m in cash proceeds to repay bank debt.

In a statement, the Leeds-based firm said: "The disposal delivers on the group's strategic objectives of reducing its indebtedness and enhancing its strategic focus on its supply and utilities facing distribution business."

Spice, which recently parted company with chief executive Simon Rogby, said it has traded in line with board expectations since its trading update in late February.

Martin Towers, interim CEO, said: "The proposed transaction is the first major step forward following the strategic review of our public facing distribution business.

"Borrowings will be significantly reduced and the group will have greater focus on its on-going activities and exposure to markets which have strong underlying regulatory and environmental drivers.

"I am pleased that the telecomsbBusiness and its management team are moving to a committed new owner in Gresham."

The disposal is subject to shareholder approval.