NTL raises £308m from sell-off

DEBT-laden cable operator NTL has agreed the sale of an Australian subsidiary in an A$850m (£308.3m) deal.

NTL Australia, which owns and operates an extensive terrestrial broadcast transmission network, is being bought by investment bank Macquarie. Macquarie is also expected to assume outstanding debt of A$227m (£82.3m).

NTL chief executive Barclay Knapp said the business had performed above expectations but that the company's priorities lay elsewhere. 'Given the focus on our core businesses in Europe and the principle of maximising stakeholder value, we believe that today's transaction allows us to achieve both objectives.'

NTL is working with three investment banks on finding a way of reducing its £12bn debt mountain.

Last year's revenues at NTL Australia were A$119m (£43.2m) with underlying earnings of A$52m (£18.9m).