UK-based transmission company Arqiva has failed to find a trade buyer for its assets and has now confirmed an Initial Public Offering which will see the business valued at £6 billion (€6.73bn) on the London Stock Exchange.
The company is currently owned by Australia’s Macquarie bank and Canada’s Pension Plan Investment Board. The FT reports that Canada-based Brookfield Investments withdrew its plans to buy the company last week.
Arqiva is looking to raise around £1.5 billion, much of which will be used to pay off debt. Some £2.5 billion of shareholder loans will then be converted into equity in the business.
Simon Beresford-Wylie, CEO of Arqiva, said: “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. We are very much looking forward to bringing our unique combination of leading assets and skills to the public markets.”