CityFibre, UK wholesale full-fibre infrastructure provider, is in talks with Mubadala Investment Company, an Abu Dhabi sovereign wealth fund, and Interogo Holding, investment arm of the group which controls Ikea, about taking stakes in the company, reports the Financial Times.
According to unnamed sources briefed on the matter, the funds are close to agreeing to provide GBP 1 billion of new equity for Goldman Sachs-based CityFibre, in exchange for stakes in the infrastructure provider. The deal would value CityFibre at around GBP 2 billion. The two funds are also involved in talks, along with other investors, to provide CityFibre with GBP 500 million of debt financing. The talks were first reported by the Wall Street Journal. A deal could be announced as early as September. Mubadala and Interogo both declined to comment on the report.
