Digital 9 Infrastructure overcomes antitrust roadblock in plan to shutter trust
Digital 9 Infrastructure is currently in the midst of laying out plans to wind down the trust, which would include selling off data centre solutions firm Verne Global.
Embattled investment trust Digital 9 Infrastructure has overcome a potential hurdle to wind down by gaining regulatory approval to sell the ‘crown jewel’ of its portfolio.
The trust is currently in the midst of laying out plans to wind down the trust, which would include selling off data centre solutions firm Verne Global.
It currently sits on an 81.6 per cent discount and has seen its stock price fall 69.9 per cent over the last year.
Digital 9 Infrastructure had planned to sell Verne Global to Ardian France as part of its wind-down, but last month, the firm reported that the Icelandic Regulatory Approval body had delayed the transaction for up to 125 working days.
However, in a stock exchange notice today, Digital 9 Infrastructure said the regulatory body had approved the transaction yesterday, adding to the already successful approval gained in Finland.
The trust is now expecting to close the sale of Verne Global by the end of this quarter, it added.
Last week, Digital 9 reported that Verne Global had accelerated its top-line revenue growth to 33 per cent year-on-year
“Following a period of heightened uncertainty and share price volatility, this is an important positive development, which paves the way for DGI9 to accelerate its balance sheet deleveraging and make progress on the managed wind-down, which shareholders are voting on later this month,” added analysts at Peel Hunt.
Shareholders will vote on the planned wind-down on 25 March.
