Digital 9 Infrastructure PLC on Tuesday said it has agreed to sell its stake in the EMIC-1 intercontinental subsea cable system for a total of $42 million.
The investor in internet infrastructure, such as data centres and subsea fibre, said the consideration represented a 15% discount to the system’s valuation of $49.6 million at June 30.
‘The project continues to be impacted by ongoing conflicts in the Red Sea area, which have led to an indefinite delay to its final construction completion,’ Digital 9 said. ‘The transaction also releases the group from $10 million of additional construction commitments.’
The sale is expected complete by March 2025.
Chair Eric Sanderson said: ‘The sale of EMIC-1 represents a key milestone for progressing the wind-down of the company and deleveraging the balance sheet, on behalf of shareholders, achieving what the board believes is an acceptable value outcome in a challenging environment.
‘We remain focused on taking every action possible to realise shareholder value over time, seeking to achieve a balance between maximising the value from our assets and making timely capital returns to shareholders.’
Sale proceeds will also enable Digital 9 to reduce its £53 million revolving credit facility, for which Digital 9 is discussing an extension beyond the current maturity date of March 31, 2025.
The remaining balance will be repaid via anticipated proceeds from other ongoing sales negotiations, including the disposal of the remainder of subsea cable business, AquaComms. The valuation process has begun in respect of its wider investment portfolio for the year ending December 31, 2024.
Shares in Digital 9 Infrastructure closed 4.4% higher at 18.90 pence each in London on Tuesday.
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