Monday, October 25, 1999 Published at 11:18 GMT 12:18 UK
Business: The Company File
Demon parent sets sale price
Thus will be worth about £2m when it floats
Scottish Power has set a price range for its Internet and telecoms subsidiary, Thus, of between 235 pence and 285 pence per share.
Thus, formerly Scottish Telecom, which includes the Demon internet service, will be valued at between £1.75bn and £2.05bn when it floats on the stock market.
Scottish Power plans to sell 49.9% of Thus, with the final price to be announced on 10 November.
While most of the cash will go to Scottish Power's coffers, about one third of the proceeds will be used to fund Thus' continued growth, Scottish Power said.
The Demon internet service has 260,000 paying subscribers. The company also provides business telecoms services and call centre services.
The majority of Thus revenue already comes from its internet and interactive services business, and it is this area the company wishes to concentrate on, a report in the Financial Times said.
The company is also expected to seek tie-ups with US carriers. Thus managing director Bill Allan, said: "We want to develop our US network coverage very aggressively."
In the year to 31 March, the company generated revenues of £166.1m.
Thus, then Scottish Telecom, was created in 1994 to make extra use of its parent's power lines.
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