Monday 16 December 2019 12:28 pm

BT sells Spanish business as it ploughs ahead with transformation plan

BT today said it has agreed the sale of its Spanish assets to private equity firm Portobello Capital, as the telecoms giant slims down its international business.

The FTSE 100 firm said it will continue to have access to the ICT infrastructure, which provides network services to roughly 600 major Spanish companies, through a wholesale agreement.

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BT did not disclose the value of the deal, but said the assets pulled in revenue of roughly £230m in the last financial year.

The company will also retain a presence in Spain with offices in Madrid and Barcelona, which serve as access points to its global network and its cyber security operations centre.

The sale is the latest move in a wider transformation plan led by chief executive Philip Jansen, who is seeking to slim down the group through the sale of fringe businesses.

In August it emerged BT was lining up the £100m sale of Dutch infrastructure, while the firm is also in talks to sell off its legal software business Tikit for roughly £80m.

“Today’s announcement is another key milestone in the execution of our strategy to make Global a more agile and customer focused business,” said Bas Burger, chief executive of Global at BT.

“The transaction is great for BT, for our people and for our customers. Through agreements with the Spanish business, it provides continuity to both our multinational and local customers. It also enables us to focus on what we do best: providing secure connectivity and digital solutions to multinational companies globally.”

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BT’s share price has enjoyed a boost in recent days as investors welcomed a resounding election victory for Boris Johnson.

Shadow chancellor John McDonnell had unveiled plans to part-nationalise the telecoms firm under a Labour government in a bid to provide free full-fibre broadband for all UK households.