The following amendment has been
made to the 'Further investment by RBSHL and others in Voneus'
announcement released on 11 June 2024 at 7am under RNS No
8384R.
The historic valuation of
approximately £6.4 million or 1.8p per GCON share in our audited
accounts for the year ended 31 December 2023 reflects neither
RBSHL's increased percentage ownership of Voneus since the 25%
starting point, nor the growing maturity and success of the
underlying business.
The full amended text is shown
below.
12 June 2024
Global Connectivity
plc
("GCON" or the
"Company")
CORRECTION: Further investment by RBSHL and others in
Voneus
Global Connectivity plc
(AQSE: GCON), a company focused on
communication services and technologies that enhance connectivity
and a shareholder in leading UK broadband provider Voneus Limited
("Voneus") through its investment in Rural Broadband Solutions
Holdings Limited ("RBSHL"), is pleased to announce that on 6
June, a further combined capital
investment of £18 million was made into Voneus by its shareholders
and lenders. As reported on 15 May 2024 in the Company's Annual
Financial Audited results to 31 December 2023, RBSHL's stake in
Voneus increased to 38% following April's capital
injection.
This latest investment in Voneus
increases RBSHL's stake to 41% from 38%. Global Connectivity plc
owns a 15% stake in RBSHL's common equity.
The most conservative method of
valuation, particularly in the early period of a merged entity, is
to use the cost of investment as the principal determinant. This is
what we have adopted, which mirrors the practice of Tiger
Infrastructure, GCON's partner in and majority shareholder of
RBSHL. To date Tiger has invested £72 million in RBSHL.
The vast majority of Tiger's
investment has been made since the merger of Macquarie's and
RBSHL's interests into Voneus was announced in September
2023. Moreover, by prior agreement, the extent of this subsequent
investment has far exceeded that made by Macquarie. As a
result, RBSHL's percentage ownership of Voneus has
increased from an initial 25% (before Tiger Infrastructure and
other shareholders merged SWS Broadband and Cadence Networks with
Voneus Broadband, and simultaneously acquired Broadway Partners in
September 2023) to approximately 41% with a consequent increase in
GCON's indirect ownership of Voneus.
Moreover, Voneus now operates on a
fully integrated basis with a resultant increase in the rate of
growth of homes passed, those ready for service and sales to
customers. The historic valuation of approximately £6.4 million or
1.8p per GCON share in our audited accounts for the year ended 31
December 2023 reflects our holding of RBSHL, but does not reflect
RBSHL's increased percentage ownership of Voneus since the 25%
starting point, nor the growing maturity and success of the
underlying business of Voneus.
GCON has uploaded a new presentation
to its website at:
https://www.globalconnectivityplc.com/documents
The information communicated within
this announcement is deemed to constitute inside information as
stipulated under the Market Abuse Regulations (EU) No 596/2014
which is part of UK law by virtue of the European Union
(Withdrawal) Act 2018. Upon publication of this announcement, this
inside information is now considered to be in the public
domain.
The Directors of the Company accept
responsibility for the content of this announcement.
--ENDS--
For
more information, contact:
Keith Harris
Executive Chairman
Global Connectivity plc
Email: info@globalconnectivityplc.com
https://www.globalconnectivityplc.com/
Claire Louise Noyce
AQSE Stock Exchange Corporate
Advisor and Corporate Broker
Hybridan LLP
Tel: +44 20 3764 2341
Email: claire.noyce@hybridan.com
www.hybridan.com