UK-based pure fibre provider CityFibre Infrastructure Holdings has announced that it is aiming to raise a minimum of GBP185 million (USD239 million) via a share shale, to be underwritten by Citigroup, finnCap, Liberum and Macquarie. In total the company will issue more than 336 million new shares, representing approximately 126.6% of its existing issued ordinary share capital, with these to be offered to both existing and new institutional investors. Alongside this, Cityfibre has confirmed it also hopes to raise a further GBP15 million through a non-underwritten offer for subscription, with around 27 million shares to be made available to ‘certain qualifying shareholders’ of the company.
In outlining its fundraising plans, CityFibre revealed the net proceeds raised will be used to fund the growth of its fibre infrastructure across the UK, with specific aims including: the expansion of its fibre metro networks from the 42 UK towns and cities covered today to not less than 50 towns and cities by 2020; and the start of a fibre-to-the-home (FTTH) network rollout addressing the residential market in between five and ten UK towns and cities in 2018.
In addition, CityFibre has also announced it is acquiring Entanet International, a provider of wholesale communications services, for a consideration of GBP29 million in cash (on a cash-free, debt-free basis and subject to adjustments). It claims this purchase will help support its strategy of focusing on wholesale fibre services, while also accelerating the commercialisation of CityFibre’s fibre assets.