BT in talks to sell its stake in Openreach

Share On Facebook
share on Linkedin
Print

Sale is to help finance the £12bn extension of BT’s full-fibre network

BT is in talks to sell its stake in its Openreach division to infrastructure investors to help to finance the £12 billion extension of its full-fibre network.

Potential buyers include Australian bank Macquarie and a sovereign wealth fund.

Openreach, which maintains the UK’s national network, is the most profitable division within BT and the potential stake sale could value the unit at about £20bn, said people close to the matter. That is double BT’s market capitalisation, which on Thursday May 14 sank to its lowest level since 2009.

Talks are yet at an early stage and the mechanism by which investors would buy a stake in Openreach remains under discussion.

BT, which operates the country’s largest broadband and mobile phone networks, considered spinning off its network division more than a decade ago but decided the business remained more valuable as a whole.

BT’s value has fallen 80 per cent over the past five years and has continued to fall as BT decided to cancel its annual dividend last week for the first time since it was privatised in 1984.

The group has pension liabilities of more than £50bn, net debt of £18bn and expects to spend £1.3bn restructuring the company over the next five years.

Openreach’s full-fibre network covers 2.6 million homes but it intends to speed up its reach over the coming years to about 3 million a year.

Shares in BT rose 9 per cent this morning.

 

For more news go to currency.com

 

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20220928 08:36:46