BT Group buys TalkTalk out of administration

(Sharecast News) - BT Group said on Monday that it has bought TalkTalk out of administration on a debt-free basis.

BT estimated the total cash impact of the acquisition in FY27 at around £400m, comprising consideration, transaction and administration costs, working capital impacts as well as a trading loss of approximately £60m and non-receipt of circa £100m otherwise due to Openreach.

The company said it recognised the risk to the country, "and especially vulnerable customers and key public services, should the company collapse". As a result, it approached the directors of TalkTalk and offered to step in immediately, in the public interest, "to protect customers and critical national infrastructure".

BT said it will be providing "much needed and immediate" reassurance for TalkTalk's employees, its 1.5 million retail customers and its 1m wholesale customers across the UK.

In the last 12 months, TalkTalk reported revenues of around £1.2bn and was loss-making. Over a period of time and through the integration into BT Group, "the acquisition will become value accretive as the business is stabilised and synergies are realised", it said.

Chief executive Allison Kirkby said: "This is a genuinely unprecedented situation, where millions of citizens and businesses were at risk if TalkTalk had collapsed. BT is the digital backbone of the country, with a presence in every postcode. We have been connecting the nation for generations, stepping up in the moments that matter, and BT acquiring TalkTalk is now the only viable option to keep millions of customers connected and supported.

"Our immediate priority is to stabilise the business and provide a safety net for the households and businesses who rely on TalkTalk. Once the regulatory process has been concluded, TalkTalk's customers will benefit from access to the UK's best network, and the full range of market-leading products and services that BT offers. And, over a period of time, the transaction will create value for all our stakeholders - customers, colleagues, the country, and our owners."

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