LONDON - Bigblu Broadband plc (AIM: BBB.L), a prominent provider of broadband services, has completed the sale of its Australian subsidiary SkyMesh to SKM Telecommunication Services Pty Ltd, a company formed by Salter Brothers Asset Management for the acquisition. The transaction was finalized today.
The deal is valued at up to AUD$50.20 million, approximately £25.03 million, with an initial cash payment of AUD$30.00 million, about £14.96 million, paid to Bigblu Broadband. Additionally, Bigblu will receive 13,320,581 shares in SKM Telecommunication Services, representing 26.5% of the headline price.
Further payments are scheduled for the first anniversary of the completion date, including 13.7% of the headline price, SkyMesh’s net profit for November 2024, and any excess of the completion payment over the cap, minus any uncollected customer debt related to the Pathfinder system implementation and costs incurred by SKM Telecommunication in the debt recovery program.
Following the disposal, Bigblu Broadband has repaid the remaining balance of its revolving credit facility with Santander (BME:SAN), amounting to approximately £6.9 million, bringing the facility’s balance to zero. The company’s board is also considering a return of cash to shareholders, taking into account the group’s ongoing and future capital requirements.
This strategic move reflects Bigblu Broadband’s efforts to streamline operations and focus on core markets and services. The information regarding the sale is based on a press release statement from Bigblu Broadband.
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