CityFibre considering sale of minority stake as it mulls further expansion plans

25 May 2021

British pure fibre provider CityFibre is reportedly considering the sale of a minority stake in a deal worth up to GBP1 billion (USD1.4 billion), The Mail on Sunday reports. According to the report, CityFibre’s chief executive Greg Mesch confirmed he is holding talks with 20 pension and infrastructure funds from the UK, North America, Europe and Australia about a deal which would help to fund the operator’s fibre-to-the-home (FTTH) rollout. It is understood that the sale of a 30% stake is under consideration, and with it suggested that a deal could be struck within the next two months, the Ontario Municipal Employees Retirement System was said to be among the potential bidders.

Meanwhile, the report also notes that, with CityFibre currently planning to invest around GBP4 billion to reach up to eight million premises across the country with FTTH by 2025, it is also now considering whether it could expand its rollout plans. According to Mesch, the number of premises passed by the CityFibre network could by increased to ten million, should the company be successful in an imminent bid for funding as part of the first phase of the UK government’s GBP5 billion Project Gigabit programme.

United Kingdom, CityFibre (incl. FibreNation)