CityFibre to gain new shareholders in GBP1bn deal?

25 Aug 2021

CityFibre appears set to gain two new shareholders, with The Financial Times reporting that Abu Dhabi-based sovereign wealth fund Mubadala Investment Company and Interogo Holding – the investment arm of the group that owns the Ikea franchise – are set to take stakes in the British fibre broadband provider. According to the report which cites ‘people briefed on the matter’, the two funds are close to injecting GBP1 billion (USD1.37 billion) of fresh equity into CityFibre. Further, it was suggested that the pair are also among several investors in talks to provide GBP500 million of debt financing to the company.

This development follows suggestions that CityFibre was considering the sale of a minority stake back in May 2021, with chief executive Greg Mesch at that date confirming he was holding talks with 20 pension and infrastructure funds from the UK, North America, Europe and Australia regarding a deal which would help to fund the operator’s fibre-to-the-home (FTTH) rollout.

United Kingdom, CityFibre (incl. FibreNation)