BT Group is looking to offload its fleet management division BT Fleet Solutions, according to reports.
The telecoms giant has appointed Lazard, the investment bank, to undertake an auction of the business.
Sky News reports that the sale process is in its early stages, but the business could be sold for £200 million or more.
BT Fleet Solutions has responsibility for the operation of BT’s own fleet – the second largest in the UK at 32,000 vehicles – while providing fleet management services to a further 90,000 cars, vans and trucks.
The 120,000-strong fleet of mission-critical vehicles and specialist ancillary equipment receives a range of services from service, maintenance and repair (SMR) and fleet management, to telematics and accident management.
Services are provided through a 65-strong, UK-wide garage network, with more than 500 partner garages and more than 50 mobile technicians.
It has been voted Van/Truck Fleet Management Company of the Year twice in a row at the Commercial Fleet Awards, as well as Supplier of the Year at the 2017 Fleet News Awards.
BT Fleet Solutions strengthened its core offering last year, with the acquisition of SEV Automotive and Plant, a UK-based mobile vehicle maintenance and servicing business.
SEV’s capabilities were added to its network of garages locations to help accelerate its plans to provide fixed and mobile SMR to new and existing customers, to accompany its fleet management service for business critical fleets.
Shares in its parent company have recovered some of the ground they have lost in the recent past, and are now marginally up over the last year, giving BT a market value of just over £25 billion.
A source close to BT said a disposal of the fleet arm was likely to include a leaseback arrangement to enable the company's engineers to continue to use the vehicles.