(Sharecast News) – Digital 9 Infrastructure tumbled as it said it was launching a strategic review after agreeing to sell its entire stake in Verne Global for up to $575m (£456m).
In a press release after the close of markets on Monday, the company said it had agreed to sell Verne Global to private equity firm Ardian France.
Digital 9 said the sale enables the company to deleverage its balance sheet by paying down around £300m of its revolving credit facility.
It said on Tuesday that the strategic review “will develop and assess the options for the company’s portfolio companies with a view to maximising shareholder value going forward”.
Chair Phil Jordan said: “The board has sought to maximise shareholder value from the company’s ownership and development of Verne Global and in doing so, help to strengthen D9’s financial position and cash resources.
“Having reached this milestone, the board will maintain oversight of D9’s portfolio and together with our advisers, engage with D9’s portfolio companies in conducting the strategic review. The board is committed to expediting the strategic review and will report its progress to shareholders in due course.”
At 1210 GMT, the shares were down 9.5% at 38.90p.