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D9 Infrastructure set to raise $274m to finance telco acquisition and further data centre investments

The trust has identified an immediate term pipeline of approximately $445 million, part of a near term pipeline of nearly $685 million, with a total pipeline of roughly $2.47 billion.

By João Marques Lima

Co-founder and Editor, The Tech Capital

3 Mins

January 14, 2022 | 2:07 AM GMT

Investment trust Digital 9 Infrastructure (LON: DGI9) has launched a placing of new ordinary shares in the London Stock Exchange (LON: LSEG) targeting gross proceeds of approximately £200 million (US$274.17 million).

The net proceeds of the placing will be used to acquire further digital infrastructure assets in line with the company’s investment objective.

As part of said targeted acquisition assets, the trust has also announced that its wholly-owned subsidiary, Digital 9 Wireless Limited has signed a conditional SPA to acquire a majority stake (56%) in the exclusive operator of public safety wireless networks across the Republic of Ireland (RoI), Tetra Ireland Communications Limited.

The deal is evaluated at approximately €76 million ($87 million), with the company saying it may also have the opportunity to increase the acquisition up to a 100% holding, which would increase the total consideration to approximately €136 million ($155.74 million).

Thor Johnsen, Head of Digital Infrastructure at Triple Point, said: “We are pleased to have entered into an agreement to acquire a majority stake in TETRA Ireland and will continue to responsibly support and enhance the mission-critical and essential national wireless infrastructure services TETRA Ireland provides. 

“The acquisition is highly attractive and complementary to the growing D9 portfolio of digital infrastructure assets, providing additional long-term contracted, inflation-linked cash returns to investors. TETRA Ireland is an essential part of the Irish national wireless infrastructure today and looking to the future, and we look forward to working with the TETRA Ireland management team and key stakeholders.”

Earlier this week, D9 announced a further US$93 million in Verne Holdings, trading as Verne Global, over the next 12 months to fund the expansion of capacity by a further 20.7 MW.

According to D9’s investment prospectus, the trust has identified an immediate term pipeline of approximately £325 million ($445.64 million), part of a near term pipeline of approximately £500 million ($685.59 million), with a total pipeline of approximately £1.8 billion ($2.47 billion).

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João Marques Lima

Co-founder and Editor, The Tech Capital

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