Spice offloads telecoms arm and cuts debt

Utility support services company Spice is without a permanent chief executive, but is still doing deals.

Today it offloaded its telecoms business for
£32.8 million to Siatel Holdings, an outfit backed by private-equity house Gresham.

The acquisition includes £7.3 million of debt and other liabilities. Spice said it would use £25.5 million in cash proceeds to repay bank debt.

In a statement, Spice said: "The disposal delivers on the group's strategic objectives of reducing its indebtedness and enhancing its strategic focus on its supply and utilities-facing distribution business."

Spice parted company with chief executive Simon Rigby recently, leaving Martin Towers as interim boss.

Towers said: "The proposed transaction is the first major step forward following the strategic review of our public facing distribution business."