Shares of Digital 9 Infrastructure experienced an increase after the company announced its plans to assess a divestment of its entire stake in the Verne Global group of companies. The specific amount for the transaction has not been disclosed.
As of 0712 GMT, shares rose by 3.5 pence, representing a 9.6% increase at 40.0 pence.
The London-listed internet investor has already received indicative offers from interested parties during the competitive process. These offers are for the syndication of a majority stake in Verne Global to a strategic capital partner. Details of the executed terms are expected to be disclosed in the fourth quarter.
Management believes that compared to the syndication, a complete divestment of the entire stake would allow the company to expedite balance-sheet deleveraging, provide the necessary cash resources to strengthen its position, and further enhance shareholder value.
In September 2021, Digital 9 acquired Verne Global for a total cash amount of 231 million pounds ($280.2 million).
The company has engaged with stakeholders representing approximately 74% of its issued share capital, along with its investment managers and joint corporate brokers. Feedback from shareholders has been received on several key areas, including the company's dividend policy and future direction.