Isle of Man-based Manx Telecom has received and recommended to shareholders an offer from infrastructure investment firm Basalt Infrastructure Partners II GP Limited to acquire the business. In a press release regarding the development, Manx Telecom confirmed that the acquisition – which values the telco at GBP2.15 per share (USD2.83 per share) – is expected to complete in early May.
Commenting, Manx Telecom chairman Kevin Walsh said: ‘Since its IPO in 2014, Manx has performed well and delivered consistent returns for its shareholders through resilient earnings, strong cash generation and a growing dividend. Basalt’s cash offer recognises the quality of the business, the management team and the employees and provides certainty to shareholders. After careful consideration and negotiation, the Board concluded that it would unanimously recommend the offer as being in the best interests of shareholders, employees and other stakeholders.’
Separately, Manx Telecom has also published its preliminary results for the year ended 31 December 2018, which it said showed ‘good progress with its strategy of strengthening its on-island telecoms business, while investing for growth in the international business Vannin Ventures’. Revenues for FY18 totalled GBP81.5 million, up from GBP78.5 million a year earlier, with ‘fixed line, broadband and data’ turnover accounting for GBP30.8 million of the total (FY17: GBP31.5 million). Mobile revenues, meanwhile, rose by 11.9% year-on-year to GBP22.3 million. Underlying EBITDA was broadly flat at GBP27.2 million (FY17: GBP27.1 million), with reported EBITDA, including final costs related to the telco’s Transformation Programme and investment in Goshawk Communication, increasing to GBP23.3 million (FY18: GBP23.1 million). Underlying profit before tax was down marginally, however, falling to GBP14.8 million in 2018 from GBP15.1 million a year earlier, attributed to increased interest payments. Reported pre-tax profit was GBP11.6 million.