Connect Infrastructure Bidco Limited – a consortium formed by private equity firm, Antin Infrastructure Partners, and Goldman Sachs’ West Street Infrastructure Partners – offered 81p a share in cash for CityFibre.
The deal represents a 93% premium to CityFibre’s closing share price of 42p on Monday.
CityFibre’s chairman Chris Stone said in a statement that the takeover meant the company would no longer be constrained by funds as it builds its own fibre-optic network in the UK in competition with BT Group PLC (LON:BT.A).
“Under private ownership, CityFibre will be able to gain alternative and potentially easier access to the financing required for its announced FTTH (fiber-to-the-home) deployment,” Stone said.
“This will strengthen the company’s ability to deliver on its vision to provide full fiber infrastructure to 20% of the UK market.”
Separately, CityFibre published its full year results on Tuesday, which showed turnover more than doubled to £34.8mln last year from £15.4mln in 2016. Turnover included a five-month contribution of £15.4mln from newly acquired wholesale fibre company Entanet.
Adjusted core earnings rose to £4.5mln from £2.5mln.