Completion of Disposal
Bigblu Broadband plc (AIM: BBB.L), a leading provider of alternative broadband services, is delighted to announce that all conditions relating to the disposal of the Company's UK and European satellite broadband operations (the "Sale Companies") to Eutelsat S.A. ("Eutelsat") have now been satisfied and therefore the disposal completed on 30 September 2020.
Pursuant to the terms of the Share Purchase Agreement and as previously disclosed, the aggregate consideration payable for the Disposal is £39.3 million, of which initial consideration ("Initial Consideration") of £37.8 million (subject to adjustment as described below) is payable in cash in part on Completion and in part following the finalisation of the completion accounts (as described below). Additional Consideration of up to approximately £1.5 million (subject to certain conditions) could be paid up to and including 30 September 2021 (being 12 months from the date of completion). Eutelsat is also assuming certain working capital creditors within the Sale Companies that, at the time of the announcement of the Disposal, amounted to approximately £13.9 million.
The final consideration due to the Company remains subject to agreement on the final completion accounts including the actual working capital at completion against an agreed target level and adjustments for cash or debt items. It is expected that such adjustments will be agreed by December 2020.
Andrew Walwyn, Chief Executive Officer of Bigblu Broadband, commented: "We are delighted to have completed the transaction, which provides a significant return on investment and strengthens our balance sheet at the same time as validating the value proposition of our buy and build strategy. We remain extremely excited by the potential afforded by our continuing operations - with recent tender wins highlighting the scalability of Quickline's operations. We look forward to providing further updates on our Australian and Nordic businesses in due course."