23rd Apr 2021 10:09
(Alliance News) - Bigblu Broadband PLC on Friday said it has agreed to sell its holding in Quickline, the holding company for Quickline Communications Ltd, to private markets investment firm Northleaf Capital Partners.
The Bicester, England-based broadband services provider said the sale values its 57% stake in Quickline at GBP48.6 million, equivalent to 84 pence per Bigblu share.
This acquisition fee consists of a cash consideration of up to GBP41.1 million payable on completion, with a further deferred GBP10.1 million subject to performance conditions being met by March 31, 2022.
Shares in Bigblu Broadband were up 14% at 123.00p in London on Friday morning.
An additional GBP5.6 million is to be satisfied in loan notes on completion, with another loan notes award of up to GBP1.8 million subject to the deferred consideration conditions also being met.
Bigblu acquired Quickline in August 2017 for a total consideration of GBP8.4 million and in August 2019, announced an GBP8.0 million private placement equity funding at a GBP15.0 million pre-money, debt-free and cash-free valuation basis.
"The management team has extensive experience in the sector and a track record of building attractive assets and delivering shareholder value. Through the sale of Quickline, BBB has once again demonstrated its ability to maximise the value of its interests in the high growth broadband connectivity market. This is now the second time that the board has realised excellent returns for shareholders," said Bigblu Broadband Chief Executive Andrew Walwyn.
By Zoe Wickens; [email protected]
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