Tiscali finally agree sale of UK arm to Carphone Warehouse
The long saga of the purchase of Tiscali UK has come to an end with the announcement that TalkTalk, part of the Carphone Warehouse Group are to purchase Tiscali's UK operations for £236 million.
The sale price, far below the £600m they originally desired when they put the 'for sale' signs out last year, may cause Tiscali to be a bit red in the face after rejecting the original offer from Carphone of £550m.
"We are delighted to be acquiring Tiscali's UK business - we know the business well and the fit with TalkTalk is perfect. In one step, it makes TalkTalk the UK's largest residential broadband provider with over 25% residential market share and a total of 4.25 million customers. It also delivers clear shareholder value with significant enhancement to this year's earnings per share and substantial synergies to be achieved next year and beyond. We very much welcome Tiscali's UK customers and staff to TalkTalk. Together we intend to continue leading the way in UK broadband."Charles Dunstone, (CEO) Carphone Warehouse Group
Currently, only 50% of the Tiscali customer base runs on an unbundled network compared with 78% of TalkTalk's. The group plan to increase this to 80% on a single LLU network for the entire group within 2 years.