TalkTalk, Britain’s fourth-largest broadband provider with about 1.5 million customers, says it is in the final stages of selling its consumer and wholesale businesses amid heavy debt and government concern over service dependencies.
TalkTalk is in advanced discussions to sell both its consumer business and its PXC wholesale network and expects deals to conclude imminently.
The company carries significant debt and has lost customers since 2019, raising the prospect of write-offs for lenders and potential steep losses for shareholders.
TalkTalk announced it is in the final stages of selling two parts of its business — the consumer broadband arm and its PXC wholesale network — and expects the transactions to complete imminently. The company has about 1.5 million customers and employs roughly 900 staff.
Reports link Opus Broadband with interest in the consumer business and Octopus Investments with interest in PXC. London-listed Gamma Communications has also been reported as a bidder for PXC. Offers reported in media coverage suggest combined proceeds could be about £300 million.
Industry commentary cited in reporting suggests around £1 billion of TalkTalk debt may need to be written off as part of any disposal. That level of write-down would shift losses mainly onto lenders and shareholders. Opus has reportedly lowered its consumer-arm offer to about £100 million. If PXC attracts bids near reported figures, the sales could still leave creditors facing substantial hits.
Sources close to the company said operations would continue and that a collapse of services is not expected. Regulators and the company say continuity for customers is a priority. The consumer business depends on PXC infrastructure, so selling the wholesale network is seen as a practical requirement for a successful handover of the consumer arm.
Officials have raised national-security concerns because some national networks and Ministry of Defence connectivity run over or rely in part on systems tied to PXC. The MoD is reported to have contingency plans to avoid dependence on a single provider.
TalkTalk was founded in 2003 and listed in 2010 after being spun out of Carphone Warehouse. Sir Charles Dunstone, the founder, remains a major shareholder and was involved in a 2020 proposal to take the company private. He and lender Ares Management have previously injected capital and could consider further support if needed.
TalkTalk said it expects to conclude both transactions imminently and hopes for announcements soon. Ofcom has said it has no formal role in the sales process but is monitoring developments, while the Department for Digital, Culture, Media and Sport declined to comment on speculation.
The company, which provides both consumer broadband and secure services for large organisations, risks appointing administrators within days.
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