CityFibre Plans $1.2 Billion Fundraise to Drive UK Broadband Acquisitions
CityFibre's Ambitious Fundraising and Acquisition Strategy
July 30 (Reuters) - British fibre broadband network CityFibre is seeking to raise £900 million ($1.20 billion) from its shareholders to fund further acquisitions, Bloomberg News reported on Thursday citing a person familiar with the matter.
Key Details of the Fundraising Effort
Here are some details:
Shareholder Investment and Capital Structure
• A spokesperson for Britain's third-largest broadband network said shareholders were proposing a "substantial equity investment" to support M&A, as CityFibre explores the "right capital structure".
Major Investors Involved
• The report said investors providing equity financing include Goldman Sachs Group, Antin Infrastructure Partners SA, Mubadala Investment and Interogo Holding.
Previous Funding Rounds
• CityFibre raised £2.26 billion from shareholders and existing lenders last July to fund network investment and acquire smaller rivals.
Industry Impact and Competitive Landscape
Challenges to Major Rivals
• The company's acquisition and expansion plans are likely to pose a challenge to bigger rivals BT and Virgin Media O2, as the industry grapples with intense competition and increasing consolidation.
Recent Industry Acquisitions
• Nexfibre, a joint venture backed by Liberty Global , Telefonica and InfraVia, bought the country's second-largest "altnet" fibre network Netomnia for £2 billion in February.
CityFibre's Market Penetration
• CityFibre, which sells fibre broadband via retail providers like Vodafone, TalkTalk and Sky, told Reuters in January that around 70% of the households that changed broadband supplier where its network was available switched to its services.
Exchange Rate Information
($1 = 0.7473 pounds)
Reporting Credits
(Reporting by Simone Lobo and Krisha Bhatt in Bengaluru; Editing by Leroy Leo)