Carphone Warehousesealed its takeover
of internet service providerTiscalithis morning as the group announced its TalkTalk subsidiary
would pay £236m for Tiscali's UK operations.
The deal makes TalkTalk the UK's largest residential broadband
provider with some 4.25 million subscribers, about a quarter of the
market.
Last month Tiscali's auditor
refused to sign off its annual accounts, indicating that it was
unhappy with the firm's debt arrangements.
In December 2008, Tiscali UK's gross assets were £457m and
profit before tax was £9.7m. TalkTalk takes on tax losses of more
than £200m, but will lift earnings 10% following savings from
network rationalisation worth £40m to £50m, the company said.
Carphone Warehouse CEO Charles Dunstone said he was delighted to
acquire Tiscali's UK business. "We know it well and the fit with
TalkTalk is perfect," he said.
Tiscali UK supplies broadband and IPTV services to 1.45 million
subscribers. It also has a shrinking base of 300,000 dial-up
internet and voice customers, and around 100,000 wholesale
broadband customers.