TalkTalk Group has selected advisers to lead the way in a breakup that will result in the sale of one of the largest broadband providers in Britain.
Sky News has discovered that PJT Partners, an investment bank, is being lined up to oversee a strategic review to determine the best timing for the sale of TalkTalk’s remaining businesses.
City sources stated that the finalization of PJT’s appointment is imminent.
Founded by Sir Charles Dunstone, who also played a role in establishing The Carphone Warehouse, TalkTalk serves 3.2 million residential broadband customers across the UK.
With this scale, it is one of the leading broadband providers in the country, attracting close scrutiny from Ofcom, the telecommunications industry regulator.
The breakup process is expected to be lengthy and will involve the separate sale of TalkTalk’s consumer operations and PlatformX, its wholesale and network division.
Insiders suggest that TalkTalk’s ethernet subsidiary within the network division could also be sold independently.
TalkTalk, which has been struggling with a heavily indebted balance sheet, received a significant boost in the summer with a £120 million capital injection.
The majority of these funds came from Ares Management, an existing lender and shareholder in the company.
This new funding followed a £1.2 billion refinancing completed late last year, but bondholders continued to push for further measures to strengthen the balance sheet.
Over the past year, TalkTalk has cut hundreds of jobs in an effort to control costs more effectively.
The company also raised £50 million through two disposals in March and June, involving the sale of non-core customers to Utility Warehouse.
Additionally, there was an agreement in principle to defer cash interest payments and capitalize them, amounting to around £60 million.
The company’s business arm is now independently owned by TalkTalk’s shareholders following a deal in 2023.
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TalkTalk was delisted from the London Stock Exchange in a £1.1 billion deal led by Toscafund and Penta Capital, sister companies of the group.
Sir Charles, the group’s executive chairman, also holds a stake in the company.
The company is currently under the leadership of CEO James Smith.
This weekend, the identity of potential buyers for TalkTalk’s remaining operations remained unclear, although several other telecom companies are expected to show interest in the consumer business.
Britain’s altnet sector, made up of numerous broadband infrastructure groups, has been facing financial challenges due to rising costs and low customer adoption rates.
A TalkTalk spokesperson declined to comment on Saturday.