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July 18,2017

CityFibre to double market value in £200m deal

Fibre optic infrastructure builder Cityfibre, currently resident in Tontine, has announced plans for a huge network rollout, which alongside the £29 million (cash) acquisition of ISP Entanet will also see them commence the construction of an ultra-fast 1Gbps Fibre-to-the-Home (FTTH/P) network in 5 to 10 UK towns and cities during 2018.

The huge expansion is to be fuelled by a new placing, which aims to raise minimum gross proceeds of £185 million (55p per share – fully underwritten by Citigroup, finnCap, Liberum and Macquarie) and this will be combined with an Offer for Subscription that could raise up to a further £15 million.

On top of that Cityfibre intend to raise further proceeds through an “accelerated book-building process which will be launched immediately following this announcement” (the “ABB Placing”). A Prospectus containing full details of the Capital Raising is expected to be published on or around 11th July 2017 and a related General Meeting will then be held on or around 27th July 2017.

An application will be made to the London Stock Exchange (LSE) for the New Ordinary Shares to be admitted to AIM, and it is expected that Admission will become effective and dealings in the New Ordinary Shares will commence on or around 28 July 2017.

Source: ISPreview