Digital 9 Infrastructure proposes managed wind-down following strategic review
The board has deferred a sale process in Arqiva while it continues to explore options.
According to a regulatory filing, following the review and consultation with financial advisers, shareholders and institutional investors, the board believes the closure of the vehicle is «in the best interests of shareholders as a whole».
The board intends to immediately begin sales preparations for the company's wholly-owned assets — Aqua Comma, EMIC-1, Elio Networks and SeaEdge UK1 — ahead of launching competitive processes later in the year.
Options to resolve Digital 9 Infrastructure's 'material uncertainty' narrow as 'funding crisis' persists
Multiple options were considered for realising the trust's stake in Arqiva as part of the strategic review, and the board concluded that maximising its holding on the firm is «likely to take longer to realise than the other investments».
As such, the board has deferred a sale process in Arqiva while it continues to explore options.
The approximately up to £456m sale of Verne Global, was first revealed as the trust confirmed a strategic review is progressing towards completion by the end of Q1 2024.
The board intends to use the proceeds of the managed wind-down to repay its revolving credit facility, before reviewing the destination of the potential remaining proceeds between the repayment of indebtedness relating to the Arqiva stake and further distribution to shareholders.
No further dividend distributions are planned, with any further cash paid to shareholders to take the form of returns of capital.
The trust intends to maintain its listing as a trust throughout the process to enable investors to trade shares.
A trading update and full year results will be published «in the coming weeks».
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