Carphone Warehouse to split


Carphone Warehouse to split

Alex Scroxton

Following a strategic review of its group structure initiated last year, The Carphone Warehouse has announced that it will split its mobile business and TalkTalk broadband units into two separately listed firms.

Speaking 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 demerger of the two operating businesses to create two separately-listed companies.

"However, the timing of any demerger 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," he added.

According to Carphone, 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 gets the thumbs up from shareholders.

The firm did not disclose any numbers at this time, but said it expected its full-year earnings to come in in-line with expectations, and forecast that revenues and profits would be largely flat during fiscal 2010.

Meanwhile, Carphone's JV with US big-box electronics retailer Best Buy is pressing on regardless. Earlier in the week it revealed plans to open up to 30 stores in the UK during calendar 2010.

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