LONDON, UK: Global Connectivity plc (AQSE: GCON), a company focused on communication services and technologies that enhance connectivity, has announced a significant development in its investment in Rural Broadband Solutions Holdings Limited (“RBSHL”), a company that provides broadband services to rural communities in the UK.

RBSHL, which is majority owned by Tiger Infrastructure Partners, a private equity firm, has merged its two operating subsidiaries, SWS Broadband and Cadence Networks, with Voneus Broadband, another rural broadband provider.

The merger also includes the acquisition of Broadway Partners, a wireless broadband operator. The combined group will operate as Voneus Broadband and will be funded with up to £250 million in new capital from its three shareholders and bank lenders.

The merger aims to advance the company’s and the UK government’s shared objective of closing the digital divide by providing high-speed broadband to over 350,000 premises across the UK. RBSHL will increase its stake in Voneus Broadband from the current 32% by disproportionately funding the combined group going forward.

Global Connectivity plc, which changed its name from Rural Broadband Solutions Plc in October 2022, has retained 15% of the ownership of RBSHL and will benefit from the increased value of the combined company. Keith Harris, Executive Chairman of Global Connectivity plc, has joined the Board of Voneus Broadband.

Keith Harris commented: “This combination is an incredibly significant step in the development of the provision of broadband services to the UK’s rural communities.

The financial strength and ambition of the institutional backing for the combined businesses will accelerate the rate of growth and provide even greater ability for future expansion. In turn, it will substantially enhance the value to GCON’s shareholders through its participation, without capital demands and with certain protection from dilution, in the ownership of the combined company.

The Board of GCON has also been actively engaged in investigating appropriate investment opportunities in technically based businesses that enhance connectivity either between consumers or businesses that provide services to consumers where enhanced connectivity is essential, provided that these investments will not compete with Voneus. It can be expected that this process will now accelerate.”

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