TalkTalk Group has secured a £100m funding commitment from an existing shareholder as it looks to support growth in its two businesses – PXC and TalkTalk.
According to Sky News, the investment for the Manchester-based telecommunications giant has come from LA-headquartered Ares Management.
The new funding forms part of a wider package of actions that is set to collectively boost the group’s funding capacity by over £200m.
These measures include selling around £50m of non-core assets and changing debt agreements so interest can be added to the loan rather than paid immediately.
The investment will be used to strengthen the company’s working capital and drive expansion in both its PXC wholesale division and its consumer-facing TalkTalk brand.
PXC is focused on delivering a next-generation, all-IP product set via its delivery portal, while also simplifying and reducing costs in network and IT operations.
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Meanwhile, the TalkTalk consumer business is preparing to re-enter the market with a new approach to customer acquisition, built around improved in-home WiFi coverage and a significantly enhanced customer service platform.
It has been undergoing a period of transformation since returning to private ownership and the business says that the funding marks a critical step in delivering its long-term goals.
“This new investment will significantly strengthen the group’s funding position and demonstrates strong conviction in our business model and value proposition,” said TalkTalk Group CEO, James Smith.
“We have already made significant progress in simplifying the way we run the business and deliver our services.
“The new investment will enable us to accelerate with confidence the next phase of new product delivery, automation and improved customer experience across both our wholesale and consumer businesses.”
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