British Telecom under MAJOR reorganisation, plans $122m infrastructure sale and NYSE delisting
Company’s CEO wants business focused on the rollout of full-broadband but still remain a “global British export” to serve the digital economy.
BT Group PLC (LON:BT.A) is said to be pondering the sale of £100m (around $122m) worth of infrastructure assets based in the Netherlands as new CEO Philip Jansen puts to work an ambitious plan to rationalise the business.
The news, broken by The Sunday Times over the weekend, say that Jansen plans to offload towers and broadband cables currently being used by Dutch BT Global Services customers.
The Dutch unit reported sales of £186m with the overall Global Services unit posting a 5% decline in revenues for the first quarter of 2019.
A statement from BT issued last week reads: “We remain committed to our Global business and the hundreds of multinational organisations that we support around the world.
“As we sharpen our focus and transform our operations, we will be divesting some of the infrastructure we no longer need to deliver services in the digital economy. Our global ambition and presence in markets around the world remain unchanged: we are, and remain, a proud British export.”
According to the British newspaper, the sale of the Dutch assets is just part of a wider project CEO Jansen is currently putting into motion to divest fringe parts of the business.
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The executive expects the move to help BT focus on the deployment of full-fibre broadband.
Furthermore, BT has also announced its intention to delist from the NYSE as well as deregister from the Securities and Exchange Commission.
The decision to delist and deregister is aimed at reducing reporting costs and complexity whilst maintaining the highest standards of corporate governance and transparent financial reporting.
Rachel Canham, BT Group’s Company Secretary, said in a statement: “BT plc will continue to positively engage with US debt investors, and its obligations to its existing bondholders will not be affected by the deregistration.
“BT plc reserves the right to delay these filings or to withdraw them prior to their effectiveness, and to otherwise change its plans in this regard.”
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