The Carphone Warehouse has announced it will split its mobile
business and TalkTalk
broadband units into two separately listed firms.
The move follows a strategic review of its group structure
initiated last year.
Speaking on Wednesday morning, as the firm updated the market on
its fourth quarter trading results to the end of March, Carphone
CEO Charles
Dunstone said: "We believe shareholder value will best be
served by a de-merger of the two operating businesses to create two
separately listed companies.
"However, the timing of any de-merger will depend on the cost
and reallocation of the Group's credit facilities. Meanwhile, the
operational separation of the two businesses has effectively been
achieved," said Charles Dunstone.
The company said the demerger will allow it to create two
discrete businesses with distinct investment profiles and improved
comparability with competitors.
Dunstone plans to remain on board as chairman of both companies,
if the demerger is approved by shareholders.
The firm did not disclose any numbers, but said it expected
full-year earnings to come in line with expectations. Carphone
Warehouse forecasts revenues and profits will be largely flat
during fiscal 2010.
Meanwhile, Carphone's joint venture with US big-box electronics
retailer Best Buy is pressing on regardless. Earlier in the week it
revealed plans to open 30 stores in the UK during calendar
2010.
This story orginally appeared on
MicroScope.