Reports: TalkTalk in talks with Macquarie and VMO2 amid business split
Macquarie is closing in on a deal to buy a stake in the wholesale arm of TalkTalk according to sources from Sky News.
This comes amid separate reports from the Telegraph that Virgin Media O2 (VMO2) is back in negotiations with TalkTalk over a potential deal to take over its consumer decision.
Sky News sources indicated that Macquarie was proposing to invest £450 million into PlatformX – the name given to TalkTalk’s wholesale platform in exchange for a 40% stake in the business.
The proceeds would be used to reduce the company’s debt amid a wider break up.
VMO2, meanwhile, had previously explored a full takeover of TalkTalk to no avail as concerns were raised around market and regulatory uncertainty.
Those talks have since restarted according to several sources.
TalkTalk is splitting its businesses into three separate companies – TalkTalk Consumer, TalkTalk Business Direct and its B2B Wholesale platform.
The broadband arm recently added 500,000 customers by buying Shell’s former consumer business from Octopus Energy.
Capacity will have more on this story as it develops.