Canada Pension Plan Investment Board (CPP Investments) is selling its stake in UK broadcast transmission provider Arqiva to Digital 9 Infrastructure.
The Canadian investor, which acquired its stake in 2009, expects to receive C$585m (€430m) in net proceeds following the sale of its entire 48.02% stake in Arqiva.
LSE-listed Digital 9 said the acquisition, expected to complete in the second half of the year, will be funded through a combination of £300m in cash and a £159.3m non-recourse vendor loan note. The remaining shares in Arqiva will be held by Arqiva’s existing shareholders.
“Since the initial investment, CPP Investments supported the company in its operational and financial transformation to adapt to the dynamic nature of the UK’s digital and broadcast infrastructure and we are confident the business will be well supported by both its new and existing investors”, said Scott Lawrence, managing director, head of infrastructure, CPP Investments.
Arqiva provides wireless infrastructure for television and radio broadcasting services and is a leading internet of things connectivity platform for UK utility providers. The company’s assets include 1,450 broadcast transmission sites and a satellite ground infrastructure which delivers 1,100 TV channels internationally to five continents.
Phil Jordan, chair of Digital 9 Infrastructure, said: “Arqiva is a long-standing trusted communications infrastructure operator in the UK and complements our investment mandate to build resilient infrastructure, promote inclusive and sustainable industrialisation, and foster innovation.
“Arqiva expands the company’s exposure to wireless networks and will support the company’s total return and yield targets as we continue to build a high-quality portfolio of scalable platforms and technologies.”
Thor Johnsen, the head of digital infrastructure at Triple Point Investment Management, Digital 9’s investment manager, said: “The core, contracted nature of Arqiva’s national broadcasting service is complemented by its high growth and innovative smart metering and connectivity solutions.
“The business benefits from the utility sector’s need to manage data more effectively across networks, whilst maintaining long-term cash flow from its national broadcasting service.”
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