Global Connectivity - Significant development in investment in RBSHL

Global Connectivity

25/09/2023 10:00

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RNS Number : 5215N  Global Connectivity PLC  25 September 2023

25th September 2023

 

Global Connectivity plc

("GCON" or the "Company")

 

Significant development in investment in Rural Broadband Solutions Holdings
Limited

 

Global Connectivity plc (AQSE: GCON), the company focused on communication
services and technologies that enhance connectivity, announces a significant
development in its investment in Rural Broadband Solutions Holdings Limited
("RBSHL").

 

This is further to our previous announcement, in October 2022, when GCON
announced an investment from Tiger Infrastructure Partners Fund III LP
("Tiger") and a change of name to Global Connectivity plc. Tiger agreed then
to invest up to £75 million into Rural Broadband Solutions Holdings Limited
("RBSHL"), a newly formed company, and assume control of its two operating
subsidiaries, SWS Broadband and Cadence Networks.  As a result, Tiger assumed
ownership of 85% of the common equity of RBSHL. Rural Broadband Solutions Plc
(the previous name of the plc with the epic code RBBS) changed its name to
GCON and, under the terms of the transaction, received cash and has retained
15% of the ownership of RBSHL. GCON has an ownership interest of 15% in RBSHL
following repayment of debt and accrued interest (not subject to further
dilution from the Tiger investment of up to £75 million).

 

It has been announced that Macquarie Capital, the Israel Infrastructure Fund
and Tiger Infrastructure Partners have merged SWS Broadband and Cadence
Networks with Voneus Broadband, and simultaneously acquired Broadway Partners.
SWS Broadband, Cadence Networks and Broadway Partners all begin operating as
part of Voneus as of today.

 

The combined group will be funded with up to £250 million in new capital from
the three shareholders and bank lenders to advance the company's and the UK
government's shared objective of closing the digital divide. It is intended
that RBSHL will disproportionately fund the combined group going forward,
which will increase its stake in Voneus Broadband from the current 32%. We
believe these developments put Voneus in a game-changing position to meet the
connectivity needs of underserved communities without broadband connectivity.
The combined company has a target to serve over 350,000 premises across the
UK.  Further details can be found in the statement issued by Macquarie
Capital and Tiger here:

 

https://www.macquarie.com/uk/en/about/news/2023/new-funding-and-consolidation-positions-voneus-as-uk-rural-broadband-market-leader.html
(https://www.macquarie.com/uk/en/about/news/2023/new-funding-and-consolidation-positions-voneus-as-uk-rural-broadband-market-leader.html)

 

Keith Harris, Executive Chairman of GCON has joined the Board of Voneus
Broadband.

 

 

 

Keith Harris, Executive Chairman of Global Connectivity plc, 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."

 

--ENDS--

 

 

For more information, contact:

 

Keith Harris

Executive Chairman

Global Connectivity plc

Email:  info@globalconnectivityplc.com

https://www.globalconnectivityplc.com/
(https://www.globalconnectivityplc.com/)

 

Claire Louise Noyce

AQSE Stock Exchange financial advisor and corporate broker

Hybridan LLP

Tel: +44 20 3764 2341

Email: claire.noyce@hybridan.com (mailto:claire.noyce@hybridan.com)

www.hybridan.com (http://www.hybridan.com)

 

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