Digital 9 Infrastructure has appointed InfraRed Capital Partners to oversee its asset disposals as the London-listed investment trust winds down.
Early this year, Digital 9 announced that following the completion of a strategic review, it had determined that it would be in the best interests of shareholders to put forward a proposal for a “managed wind-down” of the company. The proposal was approved by the shareholders in March.
Triple Point Investment Management oversaw Digital 9 Infrastructure from its initial public offering in 2021.
The investment trust has now hired InfraRed to manage the sale of its five remaining digital infrastructure assets, ”with the objective of maximising shareholder value”.
The most substantial among these assets is the firm’s investment in Arqiva, a provider of digital infrastructure, broadcast transmission, and smart meter services throughout the UK.
In 2022, Canada Pension Plan Investment Board sold its 48.02% stake in Arqiva to Digital 9. At the time, Digital 9 said the acquisition was being funded through a combination of £300m in cash and a £159.3m non-recourse vendor loan note. The remaining shares in Arqiva were held by Arqiva’s existing shareholders.
Digital 9 also holds investments in subsea fibre systems firm Aqua Comms, Irish wireless internet service provider Elio Networks and SeaEdge UK1, a data centre asset and subsea fibre landing station.
James O’Halloran a partner at InfraRed, who will become the new D9 fund manager, said: “InfraRed’s 25-year history as a value-add investor, including in digital infrastructure, coupled with its deep expertise as the long-standing manager of two pre-eminent listed infrastructure investment companies and successful disposal track record over the last 18-months, will be brought to bear as we seek to deliver for D9’s shareholders.
“We are looking forward to working closely with the board to maximise shareholder value.”
Eric Sanderson, chairman of Digital 9 Infrastructure, said: “We are pleased to welcome InfraRed as D9’s new investment manager and look forward to working with the team during the managed wind-down.”
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