Global Connectivity announces £20 million investment in Voneus

LONDON: Global Connectivity plc (AQSE: GCON), focused on enhancing communication services and technologies, has announced a further combined capital investment of £20 million in UK broadband provider Voneus Limited by its shareholders on November 14.

Global Connectivity holds its stake in Voneus through its investment in Rural Broadband Solutions Holdings Limited (RBSHL).

As previously reported on June 12, 2024, RBSHL’s stake in Voneus increased to 41%. In August, a capital injection reduced Global Connectivity’s holding in RBSHL to 11.8%, with a valuation of £13.6 million, equating to 3.75p per GCON share, as noted in the half-year results for the period ending June 30, 2024.

With the latest investment, RBSHL’s stake in Voneus remains at 41% after investing £8.2 million of the £20 million. Global Connectivity again chose not to invest and now holds a 9.5% stake in RBSHL’s common equity, valued at £11.7 million or 3.2 pence per GCON share. This investment is expected to increase the intrinsic value of Voneus, mitigating the effects of dilution for Global Connectivity.

In parallel, the company has made significant progress in exploring new investment opportunities in alternative relevant service sectors. They have analyzed several businesses in the copper replacement solutions area, which allow the inner core of copper cables to be extracted without excavation, facilitating fiber installation. Global Connectivity has reached an agreement in principle to invest in a viable opportunity in this sector and is currently in advanced due diligence and documentation stages.

This strategic move highlights Global Connectivity’s commitment to expanding its investment portfolio and enhancing its presence in the communication services and technology sectors. Further updates will be provided as the company progresses with these initiatives.

Global Connectivity plc increases stake in broadband provider Voneus