REG - Bigblu Broadband PLC - Completion of Disposal of SkyMesh Pty Ltd

Bigblu BroadbandAnnouncement

23/12/2024 07:00

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RNS Number : 0920R  Bigblu Broadband PLC  23 December 2024

Bigblu Broadband plc

 

('BBB', the 'Company' or the 'Group')

 

Completion of Disposal of SkyMesh Pty Ltd ("SkyMesh")

 

 

Bigblu Broadband plc (AIM: BBB.L), a leading provider of alternative
super-fast and ultrafast broadband services, is delighted to announce that all
conditions relating to the disposal of SkyMesh its Australian subsidiary to a
newly formed bidco, SKM Telecommunication Services Pty Ltd, have now been
satisfied and therefore the Disposal completed on Monday, 23(rd) December
2024. SKM Telecommunication was established by Salter Brothers Asset
Management for the purposes of the acquisition.

 

The Disposal has a total consideration of up to AUD$50.20m (c.£25.03 million)
(the "Headline Price"). As previously disclosed, the total consideration to be
received by BBB is as follows:

 

·    An initial cash payment of AUD$30.00 million (c.£14.96 million) to
the Company (with a value equivalent to 59.8% of the Headline Price);

·    An issuance of 13,320,581 shares in SKM Telecommunication Services
Pty Ltd (with a value equivalent to 26.5% of the Headline Price);

·    the following amounts to be paid to the Company on the first
anniversary of the Completion Date:

(i)      13.7% of the Headline Price (AUD$6.88 million (c.£3.43
million)); plus

(ii)     a cash amount equal to Skymesh's net profit after tax, before
depreciation and amortisation and unrealised foreign exchange movements, but
including management fees and exceptional items, for the month of November
2024; plus

(iii)    an amount equal to the excess of the Completion Payment above the
Completion Payment Cap if applicable; less

(iv)    the balance of the Skymesh customer debt not collected during the
period of 6 months from 1 February 2025 which is greater than 120 days overdue
relating to the implementation of the Pathfinder system in July 2023 which
resulted in approximately $2.80 million (the "Pathfinder Implementation Debt")
not being invoiced or slow to be invoiced and the subsequent delayed
collection of such due payments from customers; less

(v)   the costs incurred by SKM Telecommunication in undertaking a recovery
program of the Pathfinder Implementation Debt under the direction of the
Company.

 

As disclosed at the time the Disposal was announced on 2(nd) December 2024,
the Board are reviewing the current and future capital requirements of the
Group with the expectation that it will undertake a return of cash to
shareholders having regard to the Company's ongoing future capital
requirements. The Group's discussions with Santander have culminated in the
Group repaying the c.£6.9 million balance including accrued interest, of its
current RCF reducing it to £nil.

For further information:

 

 Bigblu Broadband Group PLC                            www.bbb-plc.com (http://www.bbb-plc.com)
 Frank Waters, Chief Executive Officer

 Cavendish Capital Markets Limited (Nomad and Broker)  Tel: +44 (0)20 7220 0500

 Marc Milmo / Finn Gordon (Corporate Finance)

 Tim Redfern / Harriet Ward (Corporate Broking)

 

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