Last checked at 1 Oct 2020 07:00
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 ("MAR"). Upon the publication of this announcement, the inside information is now considered to be in the public domain for the purposes of MAR.
Bigblu Broadband plc
('BBB' or the 'Company' or the 'Group')
Completion of Disposal
Bigblu Broadband plc (AIM: BBB.L), a leading provider of alternative broadband services, is delighted to announce that all conditions relating to the disposal of the Company's UK and European satellite broadband operations (the "Sale Companies") to Eutelsat S.A. ("Eutelsat") have now been satisfied and therefore the disposal completed on 30 September 2020.
Pursuant to the terms of the Share Purchase Agreement and as previously disclosed, the aggregate consideration payable for the Disposal is £39.3 million, of which initial consideration ("Initial Consideration") of £37.8 million (subject to adjustment as described below) is payable in cash in part on Completion and in part following the finalisation of the completion accounts (as described below). Additional Consideration of up to approximately £1.5 million (subject to certain conditions) could be paid up to and including 30 September 2021 (being 12 months from the date of completion). Eutelsat is also assuming certain working capital creditors within the Sale Companies that, at the time of the announcement of the Disposal, amounted to approximately £13.9 million.
The final consideration due to the Company remains subject to agreement on the final completion accounts including the actual working capital at completion against an agreed target level and adjustments for cash or debt items. It is expected that such adjustments will be agreed by December 2020.
Andrew Walwyn, Chief Executive Officer of Bigblu Broadband commented: "We are delighted to have completed the transaction, which provides a significant return on investment and strengthens our balance sheet at the same time as validating the value proposition of our buy and build strategy. We remain extremely excited by the potential afforded by our continuing operations - with recent tender wins highlighting the scalability of Quickline's operations. We look forward to providing further updates on our Australian and Nordic businesses in due course."
For further information:
Bigblu Broadband Group PLC | www.bbb-plc.com |
Andrew Walwyn, Chief Executive Officer Frank Waters, Chief Financial Officer Dom Del Mar, Corporate Development
| Via Walbrook PR |
finnCap (Nomad and Broker) Marc Milmo / Simon Hicks / Charlie Beeson (Corporate Finance) Tim Redfern / Richard Chambers / Manasa Patil (ECM)
| Tel: +44 (0)20 7220 0500 |
Walbrook PR (PR / IR advisers) | Tel: +44 (0)20 7933 8780 or |
Nick Rome/Tom Cooper/Nicholas Johnson | BigbluBroadband@walbrookpr.com |
About Bigblu Broadband plc
Bigblu Broadband plc (AIM: BBB), is a leading provider of alternative super-fast and ultra-fast broadband solutions throughout Europe and Australia. BBB delivers a portfolio of super-fast wireless broadband products for consumers and businesses unserved or underserved by fibre.
High levels of recurring revenue, increasing economies of scale and Government stimulation of the alternative broadband market in many countries provide a solid foundation for significant organic growth as demand for alternative super-fast broadband services increases around the world.
Post the sale of its European Satellite business to Eutelsat the remaining businesses are extremely well positioned to continue growing as it targets customers that are trapped in the 'digital divide' with limited fibre broadband options.
BBB provides customers ongoing services including hardware supply, installation, pre and post-sale support billings and collections, whilst offering appropriate tariffs depending on the requirements of each end user.