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SMALL-CAP WINNERS & LOSERS: Digital 9 seals Aqua Comms divestment

ALN

The following stocks are the leading risers and fallers among London Main Market small-caps on Wednesday.

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SMALL-CAP - WINNERS

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Digital 9 Infrastructure PLC, up 3.5% at 6.00 pence, 12-month range 4.50p-20.80p. It has sealed the sale of its Atlantic and Irish Sea subsea fibre business, Aqua Comms. The investor in internet infrastructure, such as data centres and subsea fibre, says it will net £34.0 million from the sale, topping a June valuation of £32.4 million. ‘The board intends to return proceeds, net of anticipated future working capital needs (being approximately a third of the proceeds), to shareholders by way of a prorata compulsory capital redemption, which is expected to facilitate the most efficient and cost-effective return of the proceeds to shareholders,’ Digital 9 says. ‘Future working capital needs include the necessary ongoing operational cost commitments through to the final wind down of the company, following future anticipated sale processes for Elio Networks and Arqiva.’ Digital 9, back in January 2024, put forward plans for a managed wind-down. Shareholders backed the proposal in March of that year.

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SMALL-CAP - LOSERS

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Secure Trust Bank PLC, down 1.2% at 1,250.00p, 12-month range 339.55p-1,280.00p. Shares surrender some ground after a strong end to the year. Shares have surged around 14% this week after an announcement last week Wednesday that it agreed to sell its Consumer Vehicle Finance business to private equity funds for just under £460 million, some of which the lender said it will return to shareholders. The announcement came after the market close last week Wednesday. Markets had only re-opened on Monday of this week. Secure Trust Bank shares ended last year at 362.00p.

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Videndum PLC, down 8.0% at 11.50p, 12-month range 11.20p-149.00p. Last week Tuesday, Videndum shares slumped 57% as the provider of broadcasting hardware and software said a planned refinancing will, if successful, see current shareholdings ‘very significantly diluted’. The stock has slumped 92% this year.

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