TalkTalk secures deal to sell FibreNation for £200m

Tristia Harrison Picture David Harrison.
Tristia Harrison Picture David Harrison.
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TalkTalk has announced that it is selling FibreNation for £200m.

The agreement will establish a Northern Centre of Excellence and help to deliver the next generation of digital infrastructure throughout the North of England, TalkTalk said today.

TalkTalk Telecom Group announced that it has agreed to sell the entire issued share capital of FibreNation Limited and TalkTalk's shareholding in Bolt Pro Tem Limited to CityFibre Infrastructure Holdings Limited and CityFibre Holdings Limited for £200m conditional upon shareholder approval.

The sale is underpinned by long-term wholesale agreement with TalkTalk for residential and business products in the areas where CityFibre builds, while also allowing TalkTalk the flexibility to partner with other network providers.

TalkTalk said the long term benefits of the transaction for TalkTalk included giving it access to full fibre and "delivering a superior customer experience for residential customers and businesses".

TalkTalk intends to use the net proceeds from the sale to strengthen the group's balance sheet.

The sale is conditional upon shareholder approval. The company has received commitments from shareholders holding, in aggregate, 57.5 per cent. of the entire issued share capital of the company to vote in favour of the sale.

Tristia Harrison, chief executive of TalkTalk, commented: "We are pleased to announce today's agreement with CityFibre, which is good news for TalkTalk, and good news for Britain and its full fibre roll-out ambition. Our investment over the last five years and the excellent work delivered by the FibreNation team, combined with CityFibre's well-established platform, will support wide-geographic reach of full fibre and further drive competition in the market.

"The sale of FibreNation to CityFibre, in combination with a competitive wholesale agreement, enables us to continue our strategy to accelerate TalkTalk's fibre growth for our residential and business customers, thereby delivering a superior customer experience at an affordable price."

CityFibre is the UK's third national digital infrastructure platform with networks in more than 60 towns and cities, including a number of locations in Yorkshire.