Shares in Digital 9 slump as Iceland probes Verne Global sale

Shares in Digital 9 Infrastructure tumbled on Thursday after the Icelandic authorities opened an investigation into the proposed sale of Verne Global.

The UK investment firm is selling its stake in the British data specialist, which has a data centre in Iceland, to funds managed by Paris-based private equity investment firm Ardian France.

The £456m deal, which it announced last November, is dependent on Icelandic regulatory approval.

D9 initially expected approval would be received by the end of March. But on Thursday it confirmed that Iceland’s anti-trust authority had decided to open a phase II investigation.

As a result, completion is likely to be delayed, with the body having up to 135 working days to complete its probe.

As at 1015 GMT, shares in the London-listed stock had slumped 16% to 19.48p, having earlier lost as much as 20%.

D9 said it would continue to monitor the situation, and would provide a further update to shareholders "in due course".

Last week D9 announced that, following a strategic review and consultation with advisors and investors, it had decided to wind down the company.

The firm said that a managed wind-down, which will include the sale off all assets, was the "best route" to maximise shareholder value and address its discount to net asset value.

D9, a specialist in digital infrastructure assets, acquired Verne Global, its most valuable asset, for £231m in 2021.