LONDON: Bigblu Broadband plc (BBB) has conditionally agreed to sell company’s holding in Quickline – the holding company for Quickline Communications Limited – to global private markets investment firm Northleaf Capital Partners.

The Disposal values BBB’s shareholding in Quickline at up to £48.6 million, equivalent to approximately 84 pence per BBB ordinary share. 

The consideration will be payable as follows:

· Total cash consideration of up to £41.1 million of which £31.1 million is payable on completion, 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.

 Upon completion, BBB’s remaining operations will consist of its Australasian operations (SkyMesh Pty Limited) and its Nordics business (Bigblu Norge AS).

 Highlights

 · The Disposal represents an excellent return for shareholders of up to 5.8 times the cost of BBB’s investment, realising not only an immediate cash return but also a retained interest in the business going forward.

· BBB believes that partnering with Northleaf as a majority shareholder will allow Quickline to achieve its growth strategy across all aspects of its comprehensive business plan, including its infrastructure, people and systems.

· Quickline is targeting to pass 500,000 premises with its 5G and increasingly Fibre to the Premise (“FTTP”) network in the coming years.

 Group Strategy

 · The Board’s strategic focus will continue to be on maximising value and returns for shareholders;

· BBB continues to see growth in customer numbers, revenue and EBITDA over the comparable period last year;

· BBB’s balance sheet will be further strengthened by the cash received following completion of the Disposal;

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

· An on-going focus on closing the digital divide and providing high-speed broadband solutions to rural areas in Australasia and the Nordics where traditional fibre options are either unsuitable or uneconomic;

· The Board will continue to consider investment opportunities within the Continuing Group to fund further organic growth or through strategic acquisition opportunities.

 Andrew Walwyn, Chief Executive Officer of Bigblu Broadband plc, commented: “The management team has extensive experience in the sector and a track record of building attractive assets and delivering shareholder value. Through the sale of Quickline, BBB has once again demonstrated its ability to maximise the value of its interests in the high growth broadband connectivity market. This is now the second time that the Board has realised excellent returns for shareholders.

 “BBB remains on a strong financial footing, enabling the Board to consider appropriate means of returning surplus cash to shareholders whilst also considering the opportunities within its continuing operations so as to ensure the continued future growth of shareholder value for BBB’s shareholders.”

Bigblu Broadband 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. www.bbb-plc.com