TIDMCFHL TIDMKCOM
RNS Number : 5866L
CityFibre Infrastructure Hldgs PLC
12 January 2016
For immediate release 12 January 2016
CITYFIBRE INFRASTRUCTURE HOLDINGS PLC
('CityFibre' or the 'Group' or the 'Company')
Result of General Meeting
CityFibre (AIM: CFHL), a leading designer, builder, owner, and
operator of fibre optic infrastructure in UK towns and cities, is
pleased to announce that all the Resolutions put to Shareholders at
the General Meeting of the Company held earlier today were duly
passed. The Resolutions were required to approve, inter alia, the
acquisition of certain national infrastructure assets (excluding
the Hull and East Yorkshire area) from KCOM Group plc (the
"Acquisition") for a total consideration of GBP90.0 million
together with an underwritten Placing to raise GBP80.0 million, as
announced by the Company on 14 December 2015.
As Shareholder approval has now been granted, as required under
Rule 14 of the AIM Rules, the admission of the New Ordinary Shares
and readmission of the Existing Ordinary Shares to trading on AIM
and dealings in such Ordinary Shares will take place at 8.00 a.m.
on 14 January 2016.
Completion of the Acquisition is expected to occur on 18 January
2016.
Following Admission, the total number of Ordinary Shares in
issue will be 265,672,644. There are no shares held in treasury.
Accordingly, the total number of voting rights in the Company on
Admission will be 265,672,644. This figure may be used by
Shareholders as the denominator for the calculations to determine
if they are required to notify their interest in, or a change to
their interest in, the Company under the FCA's Disclosure and
Transparency Rules.
Defined terms used in this announcement shall have the meanings
set out in the Admission Document posted to shareholders of the
Company dated 14 December 2016.
Transaction Highlights
-- Equity raise of GBP80 million before fees, committed debt
facilities of up to GBP100 million to fund the GBP90 million asset
acquisition and further development of network assets, and a
framework agreement to provide KCOM with access to the acquired
infrastructure for a term up to fifteen years, subject to a minimum
term of five years and a minimum revenue of GBP5.0 million per
annum for those five years;
-- Acquisition of metro networks in 24 towns and cities,
including 21 towns and cities that are entirely new to
CityFibre;
-- Accelerates footprint expansion by five to seven years over
the Company's organic growth plan and provides greater scope to
supply national service providers;
-- Creates a pro forma footprint of 36 metro markets with
significant asset presence from day one - the directors estimate
the expanded footprint addresses 24,500 public sector sites, 7,000
cell sites, 245,000 businesses and 3.5 million homes, or
approximately 15 per cent. of UK households;
-- Combined footprint of 36 metro markets positions CityFibre as
a national alternative to BT Openreach in the wholesale fibre
infrastructure market;
-- Contractual agreement with KCOM anchors the Acquisition
within the Company's usual TCV-capex guidelines, and forms a
platform for future revenue through further provision of fibre
connectivity to KCOM in the business and public sector markets;
and
-- The addition of the national long distance network allows
CityFibre to serve connectivity needs of national service
providers, data centres and mobile operators in search of a genuine
alternative to combined connectivity solutions offered by BT
Wholesale.
Greg Mesch, Chief Executive of CityFibre, commented:
"We've enjoyed great shareholder support for this transaction,
and we're also pleased to welcome new shareholders to the register.
The acquisition of these assets represents a unique opportunity for
CityFibre to increase its reach into 21 new markets, and enables
this asset to be integrated into CityFibre's wholesale shared
infrastructure model, opening up the use of the network to many
users across all industry verticals. Following the acquisition,
CityFibre will have a national footprint covering 36 cities, along
with a national core network, both with abundant fibre capacity
available for use by national and regional service providers and
mobile operators.
"The demand for greater connectivity and future-proof networks
in the UK has never been greater, and there is increasing
recognition of this need from all stakeholders in the market. The
acquisition of these assets will enable CityFibre to significantly
accelerate its Gigabit City roll out and play a very meaningful
role in redressing the legacy of underinvestment currently plaguing
the UK connectivity landscape."
For further information, please contact:
CityFibre Infrastructure Holdings plc www.cityfibre.com
Greg Mesch, Chief Executive Officer Tel: 0845 293 0774
Terry Hart, Chief Financial Officer
James Enck, Head of Investor Relations Tel: 0333 150 6283
finnCap (Nomad and Joint Bookrunner) www.finncap.com
Stuart Andrews / Christopher Raggett (Corporate Tel: 020 7220 0500
Finance)
Simon Johnson (Corporate Broking)
Liberum (Joint Bookrunner) www.liberum.com
Steve Pearce / Steven Tredget / Richard Bootle Tel: 020 3100 2000
/ Ben Roberts
Vigo Communications www.vigocomms.com
Jeremy Garcia / Fiona Henson Tel: 020 7016 9570
About CityFibre:
CityFibre enables gigabit connectivity through designing,
building, owning, and operating fibre optic network infrastructure.
It is the largest independent wholesale provider of fibre
infrastructure to mid-sized cities and major towns across the UK,
providing gigabit-capable infrastructure for enterprise and public
sector organisations, service providers, mobile network operators
and businesses.
The Group owns and operates over 600 route kms of local access
networks serving 1,000 customer connections in 61 towns and cities
in the UK, including Aberdeen, Bath, Bournemouth, Coventry, Derby,
Doncaster, Dundee, Edinburgh, Huddersfield, Hull, Newcastle,
Newport, Peterborough, Sheffield, and York.
To date the Company has launched six Gigabit City projects in
York, Peterborough, Coventry, Aberdeen, Edinburgh and Glasgow,
where city-wide pure fibre networks known as 'COREs' bring
world-class Internet connectivity and the benefits of gigabit
speeds to every aspect of the city's community. The Company has
also delivered the UK's first dark fibre-based Fibre-to-the-Tower
network in Hull, under a national framework agreement with MBNL,
Three UK and EE.
The CityFibre COREs are deployed using the Company's Well
Planned City (WPC) design philosophy, in which its city-wide core
fibre infrastructure is designed with thousand-strand fibre cables
in dual ducts optimally routed to serve the present and future
demand of the public sector, mobile base stations, business park
estates, and ultimately designed to serve as feeder and
distribution network for Fibre-to-the- Home deployments.
CityFibre is also a founding member of a joint venture with
TalkTalk and Sky. Established in early 2014, the collaboration aims
to prove the viability of gigabit speed Fibre-to-the-Premises
(FTTP) networks and services for homes and businesses. Work is
currently underway to connect tens of thousands of homes and
businesses in York to a future-proof FTTP modern digital
infrastructure.
CityFibre is based in London, United Kingdom, and its shares
trade on the AIM Market of the London Stock Exchange (AIM: CFHL).
To find out more, please visit: www.cityfibre.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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