A major fibre broadband network in Central London is considering a potential sale following interest from potential buyers. G Network, backed by Britain’s university lecturers’ pension scheme, has hired Nomura and Jefferies as advisers to handle takeover inquiries.
The company, which has raised significant amounts of debt and equity, has attracted attention from other players in the broadband market such as CityFibre Holdings and Community Fibre. Analysts predict that there will be a surge of consolidation in the alternative network (altnet) sector as companies face higher debt interest costs. Many of these companies have taken on substantial loans to fund their network expansions.
G Network has already connected over 416,000 broadband connections in Central London, making it an attractive acquisition for any consolidator looking to expand their presence in the capital. A source close to the company stated that it is currently performing above expectations and is on track to meet its growth targets.
In July, G Network announced that it had secured an additional £85m in funding from the Universities Superannuation Scheme (USS). This news comes amidst a wave of smaller altnets either going bankrupt or being acquired by larger players in the market.
Despite the attention, G Network has declined to comment on the potential sale. The company’s success in connecting hundreds of thousands of premises in Central London highlights its potential as a valuable asset in the broadband market.
