Carphone set to split divisions

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Carphone Warehouse confirmed it will split its retail and telecoms divisions to create two separately listed companies.

It will review a timeframe for the demerger of its TalkTalk Group and its Best Buy Europe facility, a 50/50 joint venture with US retail Best Buy that incorporates all 2,400 Carphone outlets, as it seeks the most appropriate allocation of existing debt facilities.

Carphone Group chief executive Charles Dunstone (pictured) said: “The Board has completed its initial review of the Group structure initiated in November last year. 

“We believe shareholder value will be best 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 already effectively been achieved.

“In the meantime, we have reviewed our sector classification, and both FTSE and Dow Jones have confirmed that with effect from 22 June 2009, we will be re-classified in the Fixed Line Telecommunications sector. We believe this better reflects the weight of earnings within the Group.”

Dunstone will become chairman of each company.

 

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