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Tesco talks to bankers about Tesco Mobile sale - report

2015-05-11 10:07:00| Telecompaper Headlines

(Telecompaper) UK supermarket chain Tesco has held talks with banks about the possible sale of MVNO Tesco Mobile, its 50/50 joint venture with O2 UK, people familiar with the situation told the Financial Times. The move is part of new CEO Dave Lewis's strategy of selling non-core assets to return the group to financial health. Tesco Mobile could be worth hundreds of millions of pounds, as it contributed around GBP 100 million of profit for Tesco in 2014 and benefits from the valuable Tesco brand. The MVNO had over 4 million subscribers at the end of 2014, according to Ovum. There are over 250 Tesco Phone shops and the company sells up to 2 million handsets a year. Tesco Mobile competes with value-led MVNOs TalkTalk and Giffgaff. The supermarket chain has already sold its Blinkbox VoD service and fixed-line business to TalkTalk, which could be a potential acquirer. None of the companies would comment on the matter. 

Tags: report sale mobile talks

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