BT has started work on the sale of its Spanish subsidiary as it accelerates the restructuring of its international Global Services division, reports The Telegraph.
According to City sources, BT has initiated exploratory talks with potential buyers for BT Espana and is expected to seek a price of around EUR 300 million for the business. This process is running in parallel to the sale of BT Ireland. The talks are at an early stage, with any deal more likely to appeal to buyout firms and infrastructure investors than Spain’s major operators Orange, Vodafone, Masmovil and Telefonica, added the sources.
BT previously considered bundling BT Espana with its Latin American operations to try and attract interest from a transatlantic operator such as Telefonica. However, it is now understood to be likely to sell the Spanish business on a standalone basis. BT has operated in Spain for over 25 years, offering connectivity, IT and security services to corporate customers. It recently sold marketing and operating rights for 220 BT high towers across the UK to Spanish infrastructure operator Cellnex Telecom for 20 years.
BT is selling off Global Services networks and related corporate IT businesses following the accounting scandal at its Italian unit. Sources indicate that it hopes to have the first of these sales agreed by autumn 2019, with the sale of BT Espana expected to be completed by 2020. Regulatory filings show that BT Espana generated revenue of EUR 431 million and EBITDA of EUR 38 million in 2017.
