Investors sent shares in KCom (KCOM) up 4 per cent after the telco agreed to sell its national network infrastructure to CityFibre for £90m in cash. The disposal, which excludes the group's network in Hull and East Yorkshire, promises to slash pro-forma net debt to £13m, creating scope for further investment and restructuring.
IC TIP:
Buy
at
106p
Management expects to incur £4m in net annual costs for continued access to the national network. Broker finnCap is reviewing its forecasts; it previously expected EPS of 7.6p in the year to March 2016 (FY2015: 7.8p).
