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Nexus Infrastructure PLC on Friday said it agreed to sell two of its networks to FWCP Spark UK Holdco Ltd, and that its Chief Executive Mike Morris and Chief Finance Officer Alan Martin will step down to join FWCP Spark.
The Essex, England-based infrastructure services provider is selling its multi-utilities business TriConnex and energy transition infrastructure division eSmart Network for £77.7 million in cash to FWCP Spark.
FWCP Spark is an indirect wholly-owned subsidiary of global private investment firm FitzWalter Capital and its affiliates.
Nexus Infrastructure said the sale represents an offer enterprise value of £80.6 million. A ‘substantial proportion’ of the net proceeds from the disposal will be returned to shareholders in early 2023 by way of a tender offer, which is expected to be around £65 million.
Nexus Infrastructure shares were up 13% to £172.00 at midday on Friday in London.
Following completion, Nexus’s principal trading entity will be Tamdown, which is the group’s civil engineering business.
Nexus Infrastructure said its Chief Executive Mike Morris and Chief Finance Officer Alan Martin will step down from their current roles at Nexus and will become employees and directors of FWCP Spark, to lead TriConnex and eSmart Network.
Morris, the largest shareholder of Nexus Infrastructure, will remain on the board as a non-executive director.
Nexus Infrastructure’s Chief Operating Officer Charles Sweeney will be promoted to CEO, and Dawn Hillman, financial director of TriConnex and Nexus company secretary, will be promoted to Nexus’s CFO on the completion of the sale.
Nexus Infrastructure added that trading in financial 2022 is in line with expectations. Revenue is expected to be up 27% to £173.4 million, and operating profit before exceptional items is expected to be up by around 40% to £4.0 million. The group’s order book was up by around 9.8% to £316.1 million at September 30.
By Jaskeet Briah, Alliance News reporter
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