Digital 9 Infrastructure recently announced its success in generating significant interest in equity syndication. The company’s diversified portfolio has been performing exceptionally well, and it has remained steadfast in its commitment to the dividend target.
Syndication of Minority Stake in Verne Global Group
As part of its growth strategy, Digital 9 Infrastructure has initiated a competitive process to syndicate a minority stake in the Verne Global group of companies. This acquisition was made by the company in September 2021. The syndication has garnered considerable interest, and the investment manager aims to disclose the syndication terms by the third quarter of 2023.
Utilizing Proceeds for Repayment and Capital Expenditure
The proceeds from the syndication will be utilized for two primary purposes. Firstly, a portion of the funds will be used to partially pay down a line-of-credit. Additionally, the remaining proceeds will be directed towards funding growth capital expenditure in investees. The company is also exploring other complementary sources of capital growth.
Confidence in Portfolio Performance
Digital 9 Infrastructure acknowledges the recent volatility in its share price but maintains confidence in the performance of its portfolio. The company assures stakeholders that its portfolio is meeting expectations and states that it is currently unaware of any specific factors leading to recent share price declines.
Enhancing Shareholder Value
Management is fully focused on narrowing the discount to net asset value by enhancing shareholder value. While reinvesting cash into investee companies remains a priority, Digital 9 Infrastructure will also consider share buybacks as a potential option.
Dividend Target
Digital 9 Infrastructure aims to provide an aggregate dividend of 6.0 pence (7.8 cents) per share for the year 2023.
At 0713 GMT, shares were up 4.0 pence, or 7.5%, reaching 57.4 pence.