NZ VC seeks to offload Devoli stake; calls in Bell Potter
New Zealand broadband play Devoli is preparing for movement on its register as a major shareholder looks for the exit.
Devoli says it has over 110,000 New Zealand residents hooked up to its white-labeled services.
Street Talk understands NZ venture capital fund Punakaiki Fund is seeking to offload its controlling stake in the Auckland-based broadband connection provider and has tapped Bell Potter for the sale.
Punakaiki is coming up to 10 years of ownership, a good chunk of time for a VC to hold on to a company. The holding is also understood to have breached the fund’s 20 per cent cap following a valuation increase.
Sources said Devoli is also looking to raise up to $15 million to grow the business organically and via acquisitions.
Launched in 2008, Devoli’s key business arm is its white-label broadband which large non-telco companies can sell broadband to their customer base. The company counts $NX6.2 billion market cap Contact Energy and Nova Energy among its key customer base.
A flyer, distributed to investors on Wednesday, said Devoli is profitable, hit $72.8 million revenue last financial year and has over 110,000 NZ residents hooked up to its services. The business is forecasting strong growth on all key metrics including access services, revenue, EBITDA and cashflow.
NZ investment firm Takutai is Devoli’s other major shareholder. Its representative, Vulcan Steel chief investment officer James Wells, sits on the board.
Devoli Limited sales flyer Bell Potter
The sales comes amid heightened interest in the sector as Devoli’s Australian cousin Aussie Broadband enters a bidding war with Superloop for software group Symbio. Aussie Broadband is building its own fibre network and has seen its share price jump 84 per
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