Thursday 16 January 2020 9:00 pm

Goldman-backed telecoms firm on brink of £200m Talktalk deal

Goldman Sachs-backed telecoms firm City Fibre could seal its £200m takeover of a Talktalk division as soon as this weekend.

The deal, which was first reported in August, was put on hold in November when Jeremy Corbyn’s Labour party vowed to nationalise BT’s broadband infrastructure arm and provide free broadband if they won the December General Election.

Following the Conservatives’ thumping election win, however, the sale of Talktalk’s Fibre Nation unit was put back on track and could be announced over the coming days, Sky News reported.

Talktalk entered discussions with various firms about the purchase of Fibre Nation following the election, but has chosen to press on with the deal with City Fibre, which is part-owned by Wall Street giant Goldman Sachs.

One source cautioned Sky that there was a small chance that the deal could not come off, however.

London-based City Fibre provides wholesale full-fibre internet infrastructure, working with a range of clients from consumer service providers to local authorities.

It recently partnered with Vodafone to bring fast full-fibre broadband to 1m homes and business by 2021, and aims for 5m by 2025.

The purchase of rival Fibre Nation would help City Fibre exceed these targets, which chime with Prime Minister Boris Johnson’s stated aim to get full-fibre broadband to every UK home by 2025.

Talktalk declined to comment. City Fibre could not be reached.