November 04, 2024 10:25 GMT
COMMUNICATIONS: BT Reportedly Exploring Sale Of Global Division
COMMUNICATIONS
BRITEL NR/BBB/BBB Spreads Muted, Slightly Steeper
- The Mail on Sunday reportedly indicated that BT has quietly listed its Global division for sale; we had previously flagged news on the sale of it’s Irish and Italian units though the latest reports imply that a sale of the division could be done in one transaction. Equity is muted on the report though so this may have been baked into expectations already. These transactions are small positives on the strategic refocussing of the group under CEO Kirkby though proceeds aren’t flagged or likely to be used for deleveraging.
- BT Global in FY23 generated adj-revenue of GBP 3.3bn, adj-EBITDA of GBP 0.5bn and nFCF of just GBP 63mn representing 16.1%, 5.8% and 4.7% of group totals respectively. The division, which provides cloud, security, and network solutions to multinational clients, last year merged with the Enterprise division to form BT Business.
- The article notes that PE and potential buyers like Verizon, Amazon, and Microsoft are exploring acquisition possibilities.
- H1 results on Thursday will likely see the CEO questioned on sale progress; market is looking for Q2 revenue -0.5% and adj-EBITDA +0.2% albeit with a low number of estimates. Spreads are at tight levels vs. Vodafone following strong performance since mid-Sept.
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