LONDON: TalkTalk is gearing up to raise £200m as it outlined plans to move ahead with a full fibre roll-out to more than three million homes and businesses in the UK.
The Warrington-based telecoms group said it will form a joint venture company with Infracapital, the infrastructure equity investment arm of M&G Prudential, to proceed with the project.
TalkTalk said in a London Stock Exchange statement that there will be potential equity investment of up to £500m, enabling total investment of approximately £1.5bn.
The £200m will be raised through the placing of new shares, with executive chairman Charles Dusntone and other directors contributing up to £40m.
The capital will also be used to strengthen TalkTalk’s balance sheet.
“By signing heads of terms with Infracapital we are making good progress towards putting TalkTalk at the heart of Britain’s fibre future by building a full fibre network, bringing faster, more reliable internet to millions of homes and businesses,” Dunstone said.