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TRENDING
Sept. 10, 2024
Virgin Media O2 Seeks Investors for NetCo
The Liberty Global-Telefonica company wants to raise £1 billion by selling off a minority stake in the venture, Bloomberg reported, quoting individuals who chose not to be named.
US - Virgin Media O2, a joint venture
between Liberty Global and Telefónica, is actively seeking outside investors to
support its newly established network company, NetCo. The company aims to raise
£1 billion by selling a minority stake, which could represent between 20% and
40% of the venture. This move is part of a broader strategy to challenge BT’s
Openreach in the UK market.
NetCo, valued at approximately £5 billion, is focused
on expanding the UK’s broadband infrastructure. The company has already made
significant progress, with nexfibre, a part of NetCo, reaching 1 million
premises within just 14 months1. The goal is to extend this reach to 5 million
premises by 2026. The investment will be used to enhance the existing
fixed-line network and open it up to wholesale, providing more competitive
options for consumers and businesses alike.
Virgin Media O2 is targeting a diverse range of
potential investors, including infrastructure funds, private equity firms, and
sovereign wealth funds. The sale process is expected to commence as early as
October 20242. The company is working with advisors to ensure the successful
execution of this funding round.
The decision to seek external investment comes at a
time when the demand for high-speed internet is surging, driven by the
increasing reliance on digital services and remote work. By securing additional
funding, Virgin Media O2 aims to accelerate its infrastructure projects and
solidify its position as a key player in the UK’s telecommunications landscape.
Virgin Media O2’s initiative to attract outside
investors for its NetCo unit is a strategic move to bolster its competitive
edge against market leader BT. With a clear plan to expand its broadband reach
and improve connectivity, the company is poised to make significant strides in
the telecommunications sector.
