Customers and jobs ‘top priority’ as company closes in on deals with Opus Broadband and investment group Octopus
TalkTalk is scrambling to secure its future amid the threat of administration, closing in on deals to sell its consumer and broadband arms as it seeks to save 900 jobs.
The telecoms company said on Friday it was in the final stages of sealing deals to sell its consumer business as well as its operation, PXC.
“The company is now in the final stages of its sales process for the business and expects to conclude both transactions imminently.”
The UK’s fourth-largest broadband company was founded in 2003 by Charles Dunstone as a subsidiary of Carphone Warehouse. It has attempted in the competitive telecoms market, with its customer numbers shrinking from 4 million in 2019 to about 1.5 million.
The debt-laden business is close to sealing a £100m deal to sell its consumer operation to Opus Broadband, and to sell its operation PXC to Octopus Investments for an undisclosed sum.
A spokesperson for Opus said its “top priority is to ensure that every customer stays connected and that all TalkTalk employees’ roles are protected”. Octopus Investments declined to comment.
“I’d be surprised if there is real disruption for TalkTalk customers if the deal with Opus goes ahead,” said Karen Egan, telecoms analyst at Enders, told the BBC. “They would take over the running of the operations to expect.
“They may look to move the customers to their own platform but I’m sure [the industry regulator] Ofcom would be focused on that being a very smooth transition, especially given that around 250,000 of TalkTalk’s customers are deemed to be vulnerable.”
If the cut-price deals go through TalkTalk’s owners, which include Dunstone, will have to write off about £1bn in debt.
PXC works with the Ministry of Defence although the sale process is unlikely to interrupt the services it provides.
It is understood that work with the MoD is through a third-party reseller, not PXC directly, and that regulations mean there is always at least one other telecoms company to prevent disruption.