Canada Pension Plan Investment Board Sells Arqiva Stake to Investment Trust Digital 9 Infrastructure
Posted on 06/27/2022
Canada Pension Plan Investment Board (CPP Investments) has agreed to terms with Digital 9 Infrastructure plc (D9) to sell its entire stake in Arqiva Group Limited. Arqiva Group is a wireless infrastructure provider of television and radio broadcasting services in the U.K. and an internet of things connectivity platform for U.K. utilities providers.
CPP Investments first acquired a stake in Arqiva in 2009, making this one of the public fund’s longest-standing investments in the U.K. and in the global infrastructure portfolio to date.
CPP Investments’ net proceeds from the transaction, after certain costs and adjustments, are expected to be approximately C$ 585 million. Digital 9 is paying an estimated £459 million for a 48% stake in Arqiva Group.
The transaction is subject to customary conditions and regulatory approvals and is expected to complete in the second half of 2022.
Digital 9 Infrastructure is an investment trust which invests in a range of digital infrastructure assets, including data centers, and fiber networks. Digital 9 Infrastructure raised over US$ 1 billion from its IPO in March 2021 and further placings in June and September 2021. Triple Point Investment Management is the Investment Manager for Digital 9 Infrastructure.
In July 2021, Digital 9 Infrastructure made a £50 million plus investment into the development of a new intercontinental subsea cable and terrestrial fiber system, known as Europe Middle-East India Connect 1 (EMIC-1). The investment is being made alongside an investor group and is planned for a 3-year period. Digital 9 Infrastructure’s new system will be a carrier-neutral network between Europe, the Middle East, and India comprising subsea and terrestrial fiber infrastructure which will connect key locations in these regions.
In early December 2021, Digital 9 Infrastructure completed the acquisition of a data center asset and subsea fiber landing station, SeaEdge UK1, on the U.K.’s largest data center campus in Newcastle for a purchase price of £15 million.
On January 9, 2022, Digital 9 Infrastructure agreed to invest a further US$ 93 million in Verne Holdings Limited (Verne Global) over the next 12 months to fund the expansion of capacity by a further 20.7 MW. In September 2021, Digital 9 Infrastructure completed the acquisition of Verne Holdings, a 100% renewable energy powered data centre platform in Iceland, operating on a former NATO site near Keflavik for £231 million in cash. Verne Global’s prior shareholders were Novator Partners and General Catalyst Partners, as well as co-investors Wellcome Trust and Stefnir.