TalkTalk mulls sale of B2B arm - report
UK broadband provider TalkTalk has reportedly hired bankers to oversee a sale of its business-to-business division in a deal that analysts believe could fetch more than £200m.
The privately-owned company is in the early stages of a process to sell TalkTalk Business Direct, which serves more than 80,000 small business and corporate customers.
Houlihan Lokey has been hired to handle the process, according to unnamed insiders, Sky News reported.
Any sale would include a long-term wholesale agreement providing preferential access to the TalkTalk network, the report added.
The division being earmarked for sale recorded annual revenue of over £85m and earnings before interest, tax, depreciation and amortisation of more than £17m.
TalkTalk, which was founded by the Carphone Warehouse entrepreneur Charles Dunstone, comprises three divisions, including the B2B operation.
It owns a direct consumer unit with 2.5 million customers and a wholesale platform which also has additional non-TalkTalk business and residential customers.
Reporting by Frank Prenesti for Sharecast.com