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TalkTalk Telecom Group Plc plunged as it appear affairs to advertise shares for 200 actor pounds ($278 million) to prop up its antithesis area and accounts the buildout of cilia to added than 3 actor homes and businesses in the U.K.

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The new company with Infracapital, the basement advance arm of M&G Prudential, will inject added antagonism into the U.K. cilia broadband market, which now sees BT Group Plc’s Openreach assemblage attempt with Virgin Media, Gigaclear Plc, and contempo aspirant Vodafone Group Plc’s accord with basement startup CityFibre.

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The U.K. broadband provider said in a account Thursday it will “temporarily” cut its allotment payout to shareholders to 2.5 pence to armamentarium its allotment of the cilia investment. Shares fell as abundant as 18 percent to 98.65 pence, their everyman amount ever.

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Executive Chairman Charles Dunstone said aggressive appraisement will be key to alluring barter over to the new account but beneath to accord details. “It won’t be at a cogent exceptional but we’re not adage what the appraisement will be, but it’s for everybody.”

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TalkTalk is bringing in added new barter beneath a action focused on amplification that was alien aftermost year by Chief Executive Officer Tristia Harrison and Dunstone. TalkTalk admiring 37,000 net new barter in the division concluded Dec. 31, an advance from 26,000 in the additional division and 20,000 in the first.

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TalkTalk will accept a 20 percent allotment of the 500 actor batter venture, with Infracapital demography the actual 80 percent, the carrier said, with two thirds of the 1.5 billion batter advance advancing from debt.

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TalkTalk will be a founding broad chump of the new company, committing to a minimum aggregate of business, it said. It will focus on roughly-60,000-person towns over the abutting bristles or six years, as against to Openreach’s large-city focused strategy.

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“We’re activity to focus on mid-sized towns and cities in the U.K. and that’s actual deliberate,” Harrison said on a appointment call.

Updates with allotment acknowledgment starting in aboriginal paragraph.

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