Digital 9 Infrastructure lays out plans to shutter trust

The board of embattled investment trust Digital 9 Infrastructure has today laid out plans to wind down the company.

After announcing that the trust would be pursuing a managed wind-down last month, the board said today that it had gained approval from its lenders and the Financial Conduct Authority to amend its investment policy to pursue a wind-down.

Shareholders will vote on the planned wind-down on 25 March.

In a portfolio trading update, the trust also said that key holding Verne Global had accelerated its top-line revenue growth to 33 per cent year on year, while other holdings Arqiva and Aqua Comms grew revenue by eight per cent and nine per cent respectively.

The trust said that the aggregate revenues of holdings Verne, Aqua Comms, Arqiva, Elio Networks and SeaEdge UK1 had grown 10 per cent throughout the year.

As the trust looks to wind down, the board said the manager has “commenced sale preparations for each of the company’s wholly owned assets”, but would not begin until the shareholder vote had gone through.

“it is difficult for the board to provide a precise date or certainty on the time frame for the disposal of the company’s assets,” it added.

“After careful consideration of Arqiva’s plans and current market conditions, the board believes that the maximisation of the value of Digital 9’s stake in Arqiva is likely to take longer to realise than the other investments held by the company.”

The trust added that despite announcing it would be terminating its investment management agreement with manager Triple Point when it said it would be winding down, it was now negotiating with the firm as to whether it might “agree revised commercial terms” to prepare for the wind-down.

In the last month, the trust’s stock price has dropped 22.8 per cent, largely as a result of the Icelandic Regulatory Approval body blocking the sale of Verne Global for up to 125 working days due to anti-trust concerns. It is down 76.2 per cent over the last year.