Digital 9 Infrastructure PLC on Monday said it plans to put forward a proposal for a managed wind-down of the company.
Shares in Digital 9 rose 13% to 27.77 pence each in London on Monday morning.
The London-based investor in internet infrastructure, such as data centres and subsea fibre, said that the decision was ‘carefully considered’, and intends to immediately begin sale preparations for its wholly-owned assets ahead of launching competitive processes later this year.
Digital 9 said it expects to use the proceeds from the managed wind-down to repay the amount of the revolving credit facility that will be outstanding following completion of the sale of the Verne Global group of companies.
Back in November, the firm had announced the sale of its stake in the Verne Group for up to $575 million. The disposal of the data group to funds managed by Ardian France SA comprises $440 million in cash, split between $415 million payable on closure of the deal and deferred consideration of $25 million.
This will be topped up by a potential earn-out payment of up to $135 million which is payable subject to Verne achieving run-rate earnings before interest, tax, depreciation and amortisation targets for the financial year ending December 2026.
‘Throughout the strategic review process, the board’s primary objective has always been to maximise shareholder value going forward. Having carefully considered a number of options, we have ultimately concluded that a managed wind-down of the company is likely the best route to achieve this objective and seek to address the discount to NAV that impacts our shareholders,’ said Interim Independent Chair Charlotte Valeur.
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