Deep undervalued29 Nov 2025 09:51
I subscribed for the article from the author who posted this last week
The news sent the share price plunging, but some perspective is needed here. Assuming Bigblu doesn’t receive any deferred consideration from SkyMesh, the company’s fully diluted stake in the business is still worth £6.8mn (15.5p), or more than double its depressed market capitalisation of £2.4mn, unless SkyMesh’s trading has deteriorated markedly. In addition, Bigblu holds a 2.8 per cent equity stake and loan notes (valued in Bigblu’s accounts at £5.9mn, or 13.5p) in Quickline, a company that is building fixed wireless access networks to address the ‘UK digital divide’. Quickline’s private equity owner, Northleaf Capital Partners, has provided £150mn of funding since acquiring a majority stake in the business from Bigblu in April 2021.
It means that the combined value of the two equity stakes is five times Bigblu’s market capitalisation. Moreover, in the worst-case scenario, whereby the company owes a financial liability to SkyMesh, it could always be settled by reducing the equity stake in the acquisition vehicle on a pro-rata basis. Harwood Capital, Liontrust, Gresham House and BGF Investments hold half of Bigblu’s shares, and will want the company to realise the maximum value from its SkyMesh and Quickline investments and return the proceeds to shareholders.
So, having rated the shares a hold at the interim results (‘These shares could double – but it might take time’, IC, 1 September 2025), I would hold on as the chronic undervaluation of the company’s equity will unwind when Bigblu disposes of its two major investments,