British TV Arqiva eyes London Exchange Listing

Grit Real Estate

British Telecommunication and Broadcast company Arqiva has announced its intention to float on the London Stock Exchange in a GBP6bn listing.

Chief executive officer Simon Beresford-Wylie said: “Connectivity is key to the growth and on-going competitiveness of the British economy. Arqiva provides the critical infrastructure and skilled workforce that ensures the effective operation of the UK’s television, radio, telecoms and smart meters. We are at the heart of communications and enablers of the vibrant digital economy.

“We are leading the way in the next generation of communications infrastructure and are currently investing in advanced mobile network technologies, small cells, distributed antenna systems and Machine-to-Machine networks. The group’s strong cash flows and stable, long term capital structure will allow Arqiva to invest in its operations to drive future growth and pay a generous dividend.”

For the year ended 30 June 2017, Arqiva generated revenue of GBP943.8m, growing at a compound annual growth rate of 4.9% from the year ended 30 June 2015.

Arqiva said the flotation should enable the group to reduce its outstanding debt, aiming for a target leverage of approximately 5x net debt (excluding swaps)/ reported EBITDA as of admission, by cutting debt by �0.6bn and reducing the associated interest costs by around �57m on a full year basis.

In addition, it should allow the group to restructure its swap portfolio with the remaining proceeds to a level it believes to be appropriate for a public company which it aims to complete within three months from admission. The listing should also enhance Arqiva’s profile and create a liquid market in the ordinary shares for existing and future shareholders.