TalkTalk Group picks bankers to spearhead break-up

TalkTalk Group has picked advisers to spearhead a break-up that volition pb to the merchantability of 1 of Britain's biggest broadband providers.

Sky News has learnt that PJT Partners, the concern bank, is being lined up to grip a strategical reappraisal aimed astatine assessing the optimal timing for a disposal of TalkTalk's remaining businesses.

PJT's assignment is expected to beryllium finalised shortly, City sources said this weekend.

Founded by Sir Charles Dunstone, the entrepreneur who besides helped found The Carphone Warehouse, TalkTalk has 3.2 cardinal residential broadband customers crossed the UK.

That standard makes it 1 of the largest broadband suppliers successful the country, and means that Ofcom, the telecoms manufacture regulator, volition support a adjacent oculus connected the company's plans.

The break-up is expected to instrumentality immoderate clip to complete, and volition impact the abstracted income of TalkTalk's user operations, and PlatformX, its wholesale and web division.

Within the second unit, TalkTalk's ethernet subsidiary could besides beryllium sold connected a standalone basis, according to insiders.

TalkTalk, which has been grappling with a heavy indebted equilibrium expanse for immoderate time, secured a important boost during the summertime erstwhile it agreed a £120m superior injection.

The bulk of those funds came from Ares Management, an existing lender to and shareholder successful the company.

That caller backing followed a £1.2bn refinancing completed precocious past year, but which failed to forestall bondholders pushing for further moves to fortify its equilibrium sheet.

Over the past year, TalkTalk has slashed hundreds of jobs successful an effort to exert a tighter grip connected costs.

It besides raised £50m from 2 disposals successful March and June, comprising the merchantability of non-core customers to Utility Warehouse.

In addition, determination was besides an in-principle statement to defer currency involvement payments and to capitalise those worthy astir £60m.

The company's concern limb is separately owned by TalkTalk's shareholders, pursuing a woody struck successful 2023.

TalkTalk was taken backstage from the London Stock Exchange successful a £1.1bn woody led by sister companies Toscafund and Penta Capital.

Sir Charles, the group's enforcement chairman, is besides a shareholder.

The institution is present tally by main enforcement James Smith.

The individuality of suitors for TalkTalk's remaining operations was unclear this weekend, though a fig of different telecoms companies are expected to look astatine the user business.

Britain's altnet sector, which comprises dozens of broadband infrastructure groups, has been struggling financially due to the fact that of soaring costs and debased lawsuit take-up.

On Saturday, a TalkTalk spokesperson declined to comment.