Completion of Disposal

RNS Number : 5602B

Bigblu Broadband PLC

11 June 2021

 

Bigblu Broadband plc

('BBB', the 'Company' or the 'Group')

Completion of Disposal of QCL Holdings Limited ("Quickline")

Valuing 100% of Quickline at up to £92.1 million

Bigblu Broadband plc (AIM: BBB.L), a leading provider of super-fast and ultrafast broadband services, is delighted to announce that all conditions relating to the disposal of the Company's holding in Quickline to funds managed by Northleaf Capital Partners ("Disposal") have now been satisfied and therefore the Disposal completed on Thursday 10 June 2021.   The Disposal values BBB's shareholding in Quickline at up to £48.6 million, equivalent to approximately 84 pence per BBB ordinary share*.

As previously disclosed, the total consideration to be received by BBB will be as follows:

· Total cash consideration of up to £41.1 million of which £31.1 million gross has now been received, with a further £10.1 million as deferred contingent consideration that is subject to certain performance conditions being met by no later than 31 March 2022, or in certain circumstances, 31 May 2022; and

· £5.6 million being satisfied in Loan Notes on Completion (with an option to convert partially into equity) and an additional award of Loan Notes (with an option to convert partially into equity) of up to £1.8 million subject to the conditions of the deferred contingent consideration also being met.

· Should the above options be exercised, BBB would have an 8% stake in the ongoing business.

The Board has undertaken to review the steps needed to return any surplus cash to shareholders within the current financial year.

Andrew Walwyn, Chief Executive Officer of Bigblu Broadband plc, commented:

"We are delighted to have completed the transaction, which provides a significant return on investment and strengthens our balance sheet at the same time as further validating the value proposition of our buy and build strategy."

*based on the total maximum consideration that could be received by Bigblu Broadband (including the full deferred contingent consideration) of £48.6 million and a total issued share capital of 57,589,857 ordinary shares as at 22 April 2021 (being the latest practicable date prior to the publication of this document).

For further information:

Bigblu Broadband Group PLC	www.bbb-plc.com
Andrew Walwyn, Chief Executive Officer Frank Waters, Chief Financial Officer	Via Walbrook PR
finnCap (Nomad and Broker) Marc Milmo / Simon Hicks / Charlie Beeson (Corporate Finance) Tim Redfern / Richard Chambers (ECM)	Tel: [phone]
Walbrook PR (PR / IR advisers)	Tel: [phone] or
Nick Rome/Tom Cooper/Nicholas Johnson	[e-mail]

About Bigblu Broadband plc

Bigblu Broadband plc (AIM: BBB.L), is a leading provider of alternative super-fast broadband solutions throughout Europe and Australia. BBB delivers a portfolio of super-fast wireless broadband products for consumers and businesses unserved or underserved by fibre.

High levels of recurring revenue, increasing economies of scale and Government stimulation of the alternative broadband market in many countries provide a solid foundation for significant organic growth as demand for alternative super-fast broadband services increases around the world.

BBB's range of solutions includes satellite, next generation fixed wireless and 4G/5G delivering between 30 Mbps and 150 Mbps for consumers, and up to 1 Gbps for businesses. BBB provides customers ongoing services including hardware supply, installation, pre and post-sale support billings and collections, whilst offering appropriate tariffs depending on each end user requirements.

Importantly, as its core technologies evolve, and more affordable capacity is made available, BBB continues to offer ever-increasing speeds and higher data throughputs to satisfy market demands for 'video-on- demand'. Its alternative broadband offerings present a customer experience that is similar to that offered by wired broadband and the connection can be shared in the normal way with PCs, tablets and smart-phones via a normal wired or wireless router.

 

END

 

 

DISSFAFASEFSESM