Duke Royalty puts another £2.3m into Welltel Ireland

(Sharecast News) - Alternative capital provider Duke Royalty announced a follow-on investment of £2.3m into its existing royalty partner, the Dublin-headquartered telecoms, IT and network specialist Welltel Ireland, on Thursday.
The AIM-traded firm said the additional funds would enable Welltel to complete a further acquisition, representing its fourth acquisition financed with Duke's capital.

It said the acquired business was a "long-standing and profitable" private company, in a "complementary" sector.

The financing was expected to be accretive to Duke's earnings, with the board saying it was in line with its standard terms.

"We are delighted to be making this follow-on investment into Welltel, as the company's preferred long-term capital partner," said chief executive officer Neil Johnson.

"We have developed a strong working relationship with the Executive team, who are also large shareholders in the business with a clear vision for its future.

"Our ability to grow in step with Welltel, as it continues to pursue sensibly priced, strategic mergers and acquisitions alongside organic growth, is a highly attractive feature of our funding, whilst the company's recurring, contracted and diversified earnings base serves as a great fit for our royalty model."

Johnson said that, notwithstanding the current economic climate, the transaction also reinforced the fact that Duke Royalty was "open for business" for the right deals.

"This follow-on further highlights our track-record of being a flexible and long-term funding partner for businesses in the UK, Europe and abroad."

At the close on Thursday, shares in Duke Royalty were down 1.85% at 26.5p.