19th Nov 2025 14:15
(Alliance News) - Bigblu Broadband PLC on Wednesday warned that it may receive no further proceeds from the contingent consideration attached to last year's sale of its controlling interest in Australian broadband provider Skymesh.
It has also convened a general meeting as it looks to delist from AIM and go private.
Bigblu shares plummeted 68% to 6.00 pence in London on Wednesday afternoon.
The company said it remains in discussions with buyer SKM Telecommunication Services Pty Ltd regarding the earn-out arrangements linked to the December 2024 disposal, noting that Skymesh's post-sale performance and recovery costs tied to billing system issues could significantly influence the final outcome.
Under the sale agreement, Bigblu was potentially entitled to up to AUD6.9 million, around GBP3.5 million, plus additional amounts linked to Skymesh's November 2024 profit after tax, certain completion-related adjustments, and recovery of delayed customer payments.
However, deductions could be made for overdue customer debt and the costs incurred by SKM in recovering these balances.
Bigblu said negotiations are ongoing and could result in no deferred consideration being paid – or in the company owing money to SKM. The board said it will update shareholders as talks progress.
Separately, Bigblu said it has convened a GM for December 8 to seek shareholder approval for plans to cancel the admission of its shares to trading on AIM and re-register as a private limited company.
The company has published a circular outlining the proposals, which include adopting new articles of association once the delisting becomes effective. The cancellation requires backing from at least 75% of votes cast.
If approved, the last day of dealings in Bigblu shares will be December 17. Re-registration as a private company is expected by the end of December.
The board said it unanimously recommends shareholders vote in favour of the resolutions, with directors intending to vote their combined 2.4% stake accordingly.
By Eva Castanedo, Alliance News reporter
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