Pipex sells out to Tiscali

TELECOMS COMPANY Pipex has today announced the sale of its subsidiaries to Tiscali for about £210 million before adjustments.

Switch 2 Telecoms, Pipex Homecall, Toucan Residential, Pipex Internet and Toucan Residential Ireland are the subsidiaries that Pipex will be flogging to Tiscali. It's a big move, with Pipex's Broadband and Voice outfit having reported revenues of £231.7 million and profit without tax of £13.9 million for 2006.

The sale depends on shareholder approval and competition clearance. A shareholder meeting will be held in the near future, Pipex said.

After the transaction, Pipex will have lost its Broadband and Voice division entirely and will only consist of three other divisions: Web Hosting, Business Services and Pipex Wireless. µ