TalkTalk closes in on deals to sell consumer and broadband units amid administration threat

TalkTalk is scrambling to secure its future amid the threat of administration, closing in on deals to sell its consumer business as well as its wholesale operation, PXC, according to The Guardian.

The telecoms company said it was in the final stages of sealing agreements covering both units, as it seeks to protect around 900 jobs that could otherwise be at risk. The prospective buyers named in connection with the deals include Opus Broadband and the investment group Octopus.

Customers and jobs described as 'top priority'

TalkTalk framed the priority of the negotiations around safeguarding customers and employees, signalling that maintaining service continuity for its subscriber base is central to how any transaction is structured.

The moves come as the company faces the prospect of administration, a formal insolvency process in the UK in which an appointed administrator takes control of a company to try to rescue it or achieve a better outcome for creditors than liquidation would. Selling off the consumer and wholesale arms would allow parts of the business to continue operating under new ownership even if the wider group cannot avoid financial restructuring.

Further details on the terms of the prospective deals, including valuations and timing, had not been finalised or disclosed at the time of reporting.