CityFibre Infrastructure Holdings PLC is among several bidders seeking to take over FibreNation, a broadband venture created by TalkTalk Telecom Group PLC, Sky News reported, citing industry sources.
The British fiber broadband company reportedly submitted a bid to fully acquire FibreNation, in exchange for TalkTalk getting a cash payment and becoming a customer of the business.
CityFibre, which is backed by a fund controlled by Goldman Sachs Group Inc. and private equity firm Antin Infrastructure Partners, plans to roll out fiber-to-the-premises services to 5 million homes by 2025. FibreNation aims to roll out fiber infrastructure to 3 million premises.
At least three other parties, including infrastructure funds, are still in talks with TalkTalk and its advisers at investment bank Lazard Ltd., a source told Sky News.
TalkTalk earlier sought to fund 20% of the FibreNation business under a supposed £1.5 billion joint venture deal with M&G Prudential's infrastructure equity investment arm Infracapital, which would provide the remaining 80%. However, negotiations were stalled amid a dispute on the valuation of TalkTalk's full-fiber network in York.
