19th Oct 2022 11:54
(Alliance News) - Digital 9 Infrastructure PLC on Wednesday said it has completed its acquisition of a 52% economic stake in Arqiva Group Ltd, a UK-based data, network and communications service provider.
The London-based investment fund focused on digital infrastructure announced the acquisition back in June. At the time, it said it would be funded through GBP300.0 million in cash and a GBP159.3 million vendor loan note.
The company explained that the interests acquired include a shareholder loan which results in a 52% economic stake at the current valuation levels. Digital 9 is acquiring a 48% equity holding in Arqiva.
Digital 9 said the acquisition complements its portfolio with high revenue visibility and operational cash flow.
"We are excited for the opportunity to grow Arqiva's existing national internet of things platform, while benefiting from its underlying regulated cashflow," it continued.
Further, Digital 9 said that it has successfully refinanced a GBP625 million junior bond, which was due to mature in September 2023, using existing cash resources and a new GBP450 million term loan, repayment of which is due in March 2028.
As of Wednesday, Arqiva said it now "benefits from a stable capital structure with only 13% of Arqiva's debt needing to be refinanced in the next 5 years".
Chair Phil Jordan said: "Arqiva provides D9 with access to highly resilient, long-term, and inflation-linked cash flows and further diversifies our portfolio into wireless networks. Together, D9 has built a portfolio of scalable platforms and technologies in digital infrastructure, the user demand for which will continue to grow through the economic cycle."
Shares in Digital 9 were down 2.1% to 94.00 pence each in London on Wednesday around midday.
By Sophie Rose; [email protected]
Copyright 2022 Alliance News Limited. All Rights Reserved.
Related Shares:
Digital 9