Digital 9 Infrastructure, a newly formed investment trust, announced plans to list its shares and then buy Aqua Comms, an owner and operator of subsea transatlantic fibre optic cables, as its first investment.
The trust plans to raise £400m by selling shares at £1 each in an initial public offering to invest in digital infrastructure assets that support the internet. It will start with investments in businesses that are operational with existing customers.
Digital 9 said it would pay $215m (£155m) for Aqua Comms on a cash-free, debt-free basis. Aqua Comms will make up about 30% of the company’s gross asset value after the IPO.
The trust will be managed by Triple Point, which has more than £1.8bn of capital under management. It is targeting a 10% annual return and a 6% dividend yield. It said returns would be supported by rising demand for the internet from consumers and businesses that requires faster connectivity.
James Crammer, Triple Point’s managing partner, said: “Digital 9 Infrastructure meets the combined needs of rapid deployment into the world’s internet infrastructure, and investors’ search for resilient, uncorrelated yield. By investing in operational businesses and projects, we believe DGI9 offers investors sector-leading income and target returns, backed from day one by operational revenues.”
The latest date for applications under the offer for subscription and for receipt of commitments under the initial placing is 25 March.
