Digital 9 To List Shares And Buy Aqua Comms
March 10, 2021
Digital 9 Infrastructure, a newly formed investment trust, announced plans to list its shares and then buy Aqua Comms, an owner and operator of subsea transatlantic fibre optic cables, as its first investment.
The trust plans to raise £400m by selling shares at £1 each in an initial public offering to invest in digital infrastructure assets that support the internet. It will start with investments in businesses that are operational with existing customers.
Digital 9 said it would pay $215m (£155m) for Aqua Comms on a cash-free, debt-free basis. Aqua Comms will make up about 30% of the company's gross asset value after the IPO.
The trust will be managed by Triple Point, which has more than £1.8bn of capital under management. It is targeting a 10% annual return and a 6% dividend yield. It said returns would be supported by rising demand for the internet from consumers and businesses that requires faster connectivity.