11 June 2024
Global Connectivity
plc
("GCON" or the
"Company")
Further
investment by RBSHL and others in Voneus
Global Connectivity plc (AQSE:
GCON), a company focused on communication services and technologies
that enhance connectivity and a shareholder in leading UK broadband
provider Voneus Limited ("Voneus") through its investment in Rural
Broadband Solutions Holdings Limited ("RBSHL"), is pleased to
announce that on 6 June, a further
combined capital investment of £18 million was made into Voneus by
its shareholders and lenders. As reported on 15 May 2024 in the
Company's Annual Financial Audited results to 31 December 2023,
RBSHL's stake in Voneus increased to 38% following April's capital
injection.
This latest investment in Voneus
increases RBSHL's stake to 41% from 38%. Global Connectivity plc
owns a 15% stake in RBSHL's common equity.
The most conservative method of
valuation, particularly in the early period of a merged entity, is
to use the cost of investment as the principal determinant. This is
what we have adopted, which mirrors the practice of Tiger
Infrastructure, GCON's partner in and majority shareholder of
RBSHL. To date Tiger has invested £72 million in RBSHL.
The vast majority of Tiger's
investment has been made since the merger of Macquarie's and
RBSHL's interests into Voneus was announced in September
2023. Moreover, by prior agreement, the extent of this subsequent
investment has far exceeded that made by Macquarie. As a
result, RBSHL's percentage ownership of Voneus has
increased from an initial 25% to approximately 41% with a
consequent increase in GCON's indirect ownership.
Moreover, Voneus now operates on a
fully integrated basis with a resultant increase in the rate of
growth of homes passed, those ready for service and sales to
customers. The historic valuation of approximately £6.8 million or
1.9p per GCON share in our audited accounts for the year ended 31
December 2023 reflects neither RBSHL's increased percentage
ownership of Voneus since the 25% starting point, nor the growing
maturity and success of the underlying business.
GCON has uploaded a new presentation
to its website at: https://www.globalconnectivityplc.com/documents
The information communicated within
this announcement is deemed to constitute inside information as
stipulated under the Market Abuse Regulations (EU) No 596/2014
which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. Upon publication of this announcement, this
inside information is now considered to be in the public
domain.
The Directors of the Company accept
responsibility for the content of this announcement.
--ENDS--
For
more information, contact:
Keith Harris
Executive Chairman
Global Connectivity plc
Email: info@globalconnectivityplc.com
https://www.globalconnectivityplc.com/
Claire Louise Noyce
AQSE Stock Exchange Corporate
Advisor and Corporate Broker
Hybridan LLP
Tel: +44 20 3764 2341
Email: claire.noyce@hybridan.com
www.hybridan.com