TalkTalk in discussions for UK FTTP roll out
TalkTalk is in discussions with Infracapital with a view to rolling out full fibre across the UK.
The company announced within its Q3 results that it has agreed to create an independent company, representing 80 per cent Infracapital and 20 per cent TalkTalk, to provide fibre to more than three million homes and businesses across mid-sized towns and cities in the UK.
With a potential equity investment of up to £500 million, TalkTalk is to be a founding wholesale customer for the new company.
The group separately announced its intention to raise up to £200 million by way of an accelerated book build with the executive chairman and other directors participating with an intended £40 million contribution.
Proceeds will be used to strengthen the group's balance sheet and invest in long-term FTTP plans. Dividends have additionally been temporarily reduced to 2.5p per annum to fund continued investment.
Charles Sunstone, TalkTalk's executive chairman said: 'By signing heads of terms with Infracapital we are making good progress towards putting TalkTalk at the heart of Britain's fibre future by building a full fibre network, bringing faster more reliable internet to millions of homes and businesses.
'We anticipate revenue growth and strong earnings growth in the year ahead as the benefits of a growing customer base and rigorous cost control begin to deliver the results this business is capable of.'