TalkTalk Telecom Group Limited
(the "Issuer")
SUBSIDIARY DISPOSAL
The Issuer wishes to announce that TFP Telecoms Limited ("TFP"), a special purpose vehicle controlled by the ultimate major shareholders of the Issuer, has acquired TalkTalk Business Direct Limited ("TTBD"), the SME and enterprise-focused connectivity provider, from a subsidiary of the Issuer for £95 million.
Under the terms of the transaction, if TFP subsequently sells TTBD to a third party in the next 12 months, any net sale proceeds in excess of £95 million will be passed through to the Issuer.
As part of the sale, TTBD has signed an exclusive long-term Wholesale Services Agreement with the Issuer’s group worth c.£25 million over the next three years, to ensure access to its Tier One wholesale platform, providing long-term revenue certainty for the platform and connectivity supply for TTBD’s 90,000 business customers.
The transaction is in line with shareholders’ commitment to support the separation of the Issuer’s group into three separate businesses and the associated refinancing of those businesses on a separated basis.
A fair valuation opinion has been lodged with the Issuer’s bondholder trustee given this is a related party transaction.
All enquiries in relation to this announcement should be addressed to:
CAREY OLSEN CORPORATE FINANCE LIMITED
Listing Agent
Tel: +44 (0)1534 888 900