UK-based telecoms group TalkTalk has announced that it has reached an agreement to sell the entire issued share capital of its FibreNation subsidiary to British pure fibre provider CityFibre. Confirming the deal, TalkTalk revealed that CityFibre will pay GBP200 million (USD260 million) for the unit, which controls fibre-to-the-premises (FTTP) infrastructure in York, Harrogate and Dewsbury, and is in the process of rolling out in Knaresborough. Completion of the deal is expected in March 2020.
In addition, TalkTalk has also confirmed that the sale – which remains conditional subject to shareholder approval – will be underpinned by a long-term wholesale agreement between it and CityFibre for residential and business products in the areas where the latter builds out FTTP connectivity; this agreement will, it was noted, also allow TalkTalk the flexibility to partner with other network providers.
Commenting on the deal, TalkTalk CEO Tristia Harrison said: ‘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.’