Cordiant Digital Infrastructure today announced the launch of a £250m placing of C Shares to provide the firm additional capital to fund acquisition opportunities from its ~£800m advanced pipeline. Specifically, the firm is at an advanced stage of negotiations for transactions with a value of ~£800m and has a total actionable pipeline of £1.2bn+.
Advanced Pipeline – Cordiant Digital Infrastructure
Below are the three specific investment opportunities which form Cordiant Digital Infrastructure’s advanced pipeline. Indeed, these investments span the three major sectors of digital infrastructure: towers, data centers, and fiber.
Multi-Asset Tower and Fiber Business in Europe
Cordiant Capital, the investment manager of Cordiant Digital Infrastructure, is in exclusive, bilateral negotiations, with an agreed price, for a European multi-asset tower and Internet of Things (IoT) business. Indeed, Cordiant has substantially completed due diligence on this opportunity and expects to announce a deal in June 2021.
European Data Center Business
Cordiant Capital has commenced initial due diligence on an opportunity to acquire a European data center business. Specifically, this asset could anchor Cordiant Digital Infrastructure’s European data center strategy. If successful, the acquisition could close in Q3 2021.
North American Edge Data Center Business
Cordiant Capital is in bilateral negotiations on a North American edge data center opportunity. Specifically, this opportunity represents a majority investment in a data center business alongside an entrepreneurial founder. The founder is seeking growth capital to significantly expand the business. If successful, the acquisition could close in Q3 2021.
Issue of C Shares – Capital Raise
Cordiant Digital Infrastructure intends to raise £250m of gross proceeds through the issue of 250 million C Shares at a price of 100p per C Share. Additionally, the firm may increase the size of the C Share placing, based on investor demand, up to 500 million C Shares. Therefore, Cordiant Digital Infrastructure could raise up to £500m of gross proceeds, assuming the same placing price of 100p per C Share.
Notably, Steven Marshall, Chairman of Digital Infrastructure at Cordiant Capital, will subscribe for a minimum of 1 million C Shares, equivalent to £1m, as part of the placing.
Investec is serving as financial advisor, global coordinator, and sole bookrunner to Cordiant Digital Infrastructure for the C Share placing. Finally, the C Share placing is expected to close by June 8, 2021.
Deployment of IPO Proceeds
Today’s announcement closely follows Cordiant Digital Infrastructure disclosing that it will have deployed the vast majority of the £370m of equity it raised through its initial public offering (IPO). Specifically, in early May 2021, the firm announced two separate acquisitions.
Firstly, Ceské Radiokomunikace (CRA) in the Czech Republic, from funds of Macquarie. Secondly, an undisclosed long-haul fiber optic network and land sites for data center development in Norway.
Together, these acquisitions comprise £318m of equity investment, leaving the firm with dry powder of £43.4m of equity to invest. Indeed, Cordiant Digital Infrastructure’s advanced pipeline of ~£800m of investments significantly exceeds this remaining uninvested equity capital from its IPO.