Cordiant Digital Infrastructure Ltd (LSE:CORD) confirmed it has now received final regulatory approval for its proposed acquisition of Emitel, a Polish telecoms firm specialising as a "diversified digital infrastructure platform".
The company, in a statement, described it as its largest investment since launch and noted that upon transaction close it will have secured "the potential for full utilisation" of its €200mln Eurobond facility (announced in June) – as some €80mln had been contingent upon the deal.
"The completion of the acquisition of Emitel will be a further strategic milestone for the company,” said CORD chair Shonaid Jemmett-Page.
“It is a significant acquisition of a profitable and diversified platform in a market where data consumption growth is among the most robust in Europe.”
Jemmett-Page added: “This aligns with the company's Buy, Build & Grow strategy and offers the potential to generate additional value and further attractive returns to shareholders."
Steven Marshall, chairman of Digital Infrastructure at Cordiant Capital, meanwhile, said: "Emitel is a strong addition to the company's portfolio. It is a dynamic and well-managed company with an attractive future growth trajectory.
“It also brings an effective ESG programme aligned with CORD's goals in this area, including the use of green energy. The Emitel multi-asset infrastructure platform brings contracts with inflation linkage, strong margins and cash generation characteristics."
Cordiant Capital chief executive Benn Mikula described Emitel as "an important component in our strategy for portfolio construction".
“This will provide a firm foundation for CORD's dividend and enable further growth capital expenditure that should enhance shareholder returns.
“We look forward to building CORD in North America and Europe."
Emitel generated some 486mln Zloty (around £91mln) of revenue in 2021 and 319mln Zloty (£59mln) of earnings, with the company described as showing consistent year-over-year growth with a stable business model and high revenue and cash flow visibility.
CORD, meanwhile, told investors it was now confirming its dividend guidance pending completion of the transaction – expecting to pay 4p per share for the year to 31 March 2023.