Bigblu Broadband shares soar on Quickline sale

Bigblu Broadband said it was reviewing options to return cash to shareholders after agreeing the sale of its holding in Quickline to Northleaf Capital Partners in a deal valuing the stake at up to £48.6m.

Shares of Bigblu jumped 14.7% to 123.88p at 09:32 BST - their highest value in almost two years.

The high-speed broadband provider said it would receive £31.1m when the deal completes with a further £10.1m based on performance no later than May 2022. It will also receive £5.6m in loan notes with an option to convert partially into equity with an additional £1.8m of loan notes subject to performance.

If the options were exercised Bigblu would have an 8% stake in the continuing business, which serves households and businesses in the UK. The deal values Quickline at up to £92.1m and leaves Bigblu to concentrate on its Australasian and Nordics operations.

Bigblu said the deal would strengthen its balance sheet and it would look at investments to fund growth and acquisitions. The company said it was considering the best way to return any excess cash to shareholders during the current financial year.

Andrew Walwyn, Bigblu's chief executive, said: "Through the sale of Quickline, BBB has once again demonstrated its ability to maximise the value of its interests in the high growth broadband connectivity market.

"BBB remains on a strong financial footing, enabling the board to consider appropriate means of returning surplus cash to shareholders whilst also considering the opportunities within its continuing operations."

The company also said customer numbers, revenue and earnings were continuing to increase compared with a year earlier. It will hold a general meeting on 12 May for shareholders to approve the sale of Quickline. It already has pledges representing 64% of shares to vote for the deal.