BT Fleet Solutions in the running to gain from sell off it is predicted
Analysts suggest that the sale of BT Fleet Solutions by BT could aid in their expansion plans.
According to the reports, investment bank Lazard has been appointed by the telecommunications giant to oversee the £200 Million sale.
BT’s BT Fleet Solutions oversees a whopping 33,000 strong fleet and provides fleet management services to a further 120,000 vehicles including more than 7000 trucks. BT Fleet also owns 65 of its own garages and utilises a national network of 500 partner garages.
The potential sale is the consequence of a major review of BT Group ordered by the new CEO, Philip Jansen. Philip is looking to cut costs at the company which saw a 42% decrease in profit last year after losing £530 Million in connection to accounting fraud at BT Italia.
BT has been on the expansion recently buying SEV Automotive and Plant last year. This expanded its garage network allowing it to strengthen mobile vehicle maintenance and servicing as well as adding HGV repair capabilities to more of it’s garages.
An analyst for Macquarie Group, Guy Peddy commented that “BT was reviewing all of it’s non-core assets. BT Fleet is non-core and with its recent expansion and development into offering third party work, it no longer really makes sense to be owned by a telecommunications company”.
James Barford, head of telecoms research for Enders Analysis said “the sale would allow BT Fleet Solutions to become more competitive”.
By becoming a separate entity, they would be able to bid on fleet management contracts such as those of BT’s rivals.
A spokesperson for BT however commented that “BT does not comment on rumour or speculation”.
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