3i Infrastructure to write down DNS:NET value amid refinancing worry

(Alliance News) - 3i Infrastructure PLC on Monday said developments at German telecommunications provider DNS:NET clouded "another strong period" in the four months to January.

The Jersey-based infrastructure investor said DNS:NET has seen a material worsening of the lending appetite for German fibre roll-out businesses.

"The main trigger of this deterioration was news in December of a significant restructuring of the debt at the largest altnet rolling out fibre across Germany," the firm said.

As a result, and assuming no further debt can be raised to support the continuation of the roll out, 3i Infrastructure now expects that the value of the existing equity in the company is likely to be written down to zero in its next valuation of the portfolio at the March 2026 year end.

The most recent 3i Infrastructure valuation of DNS:NET at September 2025 of GBP212 million represented 23 pence per share, or 5.6% of net asset value.

In 2021, 3i Infrastructure acquired a 60% stake in DNS:NET for around EUR182 million.

Bernardo Sottomayor, managing partner and head of European infrastructure at the investment manager 3i Investments said: "The material impact of the worsening finance environment around the fibre roll-out sector in Germany and consequently on our investment in DNS:NET is a disappointing outlier."

In response, shares in 3i Infrastructure fell 5.4% to 353.00 pence each in London on Monday morning.

Reviewing the rest of its portfolio, 3i Infrastructure said energy infrastructure provider Joulz signed agreements to acquire two businesses which will increase Joulz's earnings before interest, tax, depreciation and amortisation by around 70%, while transports and logistics firm TCR continues to perform well, winning a number of new contracts with existing and new customers.

Transport and logistics provider SRL has seen a continuation of the challenges flagged at the half-year, 3i Infrastructure said, while other portfolio companies are "performing broadly in line with or above expectations set at September."

According to its website as at September 30, the company had a portfolio of 11 economic infrastructure businesses, valued at GBP4.1 billion.

On Monday, 3i Infrastructure said total income and non-income cash in the three months to December 2025 was GBP53 million and it remains on track to deliver the full-year 2026 dividend target of 13.45 pence per share, up 6.3% from the year prior.

"We continue to expect the dividend to be covered by net income," the firm added.

3i Infrastructure's financial year ends on March 31.

By Jeremy Cutler, Alliance News reporter

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