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TalkTalk pulls out of plan to sell b2b unit to Daisy Group

“Daisy remains an important, long-term strategic partner for TalkTalk,” the telecoms firm said.
TalkTalk was to sell the unit to Daisy for £175mln

Talktalk Telecom Group PLC (LON:TALK) has ditched a plan to sell its direct business-to-business (b2b) unit to Daisy Group.

The company did not provide a reason but said it would continue to manage all direct business for the division, providing “uninterrupted services for customers”.

“Daisy remains an important, long-term strategic partner for TalkTalk,” it added.

READ: TalkTalk announces sale of direct B2B unit as it reports 35% drop in profits

The telecoms group also said its guidance for 2019 underlying earnings (EBITDA) remains at £233mln, a 15% increase on the previous year.

TalkTalk announced in May that it would sell the b2b unit to Daisy Group for £175mln as part of a wider strategy to simplify operations to focus on growth areas.

At the time, the firm said it would take a £15mln hit from the proposed sale but the deal would strengthen its balance sheet and allow for investment in “sustainable growth” and its plans to build a new full fibre broadband network for three million premises.

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