The NWF’s investment forms part of a wider capital raise alongside Wessex’s shareholders, Aberdeen Investments and Wessex’s Founders, as well as an extension of an existing loan from Triodos.
The financing will support £72m of subsidy provided by BDUK under four contracts within its Project Gigabit programme that together enables Wessex’s highly specialised full fibre rollout to hard-to-reach and underserved areas. The combined capital raise and subsidy will allow the Company to continue expanding its existing 40,000 premises network to approximately 137,000 rural premises.
Wessex is a collaborative provider focused on the delivery of reliable connectivity to small rural communities where larger providers often struggle to justify investment because of the complex rollout and comparatively small numbers of premises. Its sustained rollout using innovative rural build techniques will continue to level the playing field for rural communities in Dorset, Somerset, Hampshire and Wiltshire by providing access to fast, reliable and affordable full fibre broadband, supporting the local economy by improving connectivity for businesses and families alike.
Ian Brown, Head of Banking & Investments at the National Wealth Fund, said:
Every home and business in the UK deserves access to fast, affordable and reliable broadband. Our financing for Wessex Internet will ensure that underserved rural communities will benefit from the continued full fibre rollout, helping to improve connectivity and support local economies.
Hector Gibson Fleming, CEO at Wessex Internet, said:
This investment is a further validation of the rural build model that our passionate team has developed over the last decade. We never intend to be the largest full fibre operator in the market however we understand our niche and our coverage has a huge impact on the communities we serve, connecting families and empowering local charities and businesses. This vote of confidence from NWF and our existing Shareholders allows us to continue maximising the impact we have on our local area and is a credit to the teams that are efficiently delivering some of the most challenging infrastructure in the market.
Alex Anderson, Investment Director, Aberdeen Investments, said:
Wessex Internet is a business with the core objectives of connecting rural communities, driving productivity and reducing the digital divide across the South-West. The company has delivered at pace against these objectives, and we are thrilled to see all this hard work recognised by the National Wealth Fund. It continues to be a privilege to work alongside Wessex Internet’s founders and management team as they enter this next phase of growth.
Wessex Internet were advised by Cameron Barney Herbst Hilgenfeldt as financial adviser with GreySky supporting on the commercial and technical diligence and A&O Shearman as legal adviser.
Share this page