Cash buy of CityFibre for £538million by Bidco agreed upon

Wednesday, April 25th 2018

CityFibre, the fibre-optic network builder of UK, has made an announcement that they have agreed to an acquisition by a company newly incorporated. The company Connect Infrastructure Bidco Limited (Bidco) is jointly owned by a consortium. Bidco is owned jointly by Wall Street Global Infrastructure Partners III LP and Antin Infrastructure Partners UK Ltd. The cash buy takeover announcement came the same day of the 2017 results of CityFibre.


Bidco has valued at approximately £537.8 million the total of ordinary share capital, issued and to be issued, on the basis of ordinary share capital of 6663,912,902 shares of CityFibre, fully diluted. CityFibre agreed to an offer of 81.0 pence per share from Bidco. It represents a premium of 93% to the share price at the close, on Monday, 23 April (2018).


Chairman of CityFibre Chris Stone, said CityFibre is on a transformational journey since its inception in 2014 and has established itself as a leading provider of wholesale fibre. The company has over the years been gradually deploying Gigabit capable FTTP based broadband and Ethernet network, catering to public sector and business sites across the UK.


CityFibre has previously teamed up with Talk Talk and Sky Broadband for a major deployment across York city. Recently they have also signed a deal with Vodafone (for £500 million) to roll-out initially an ultrafast network across up to 12 cities, where CityFibre has a presence and aims to reach at least a million homes by the end of 2021 and up to 5 million homes by 2025.


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