HgCapital set for 2.1x return from Manx Telecom IPO


telecoms6_sqEuropean sector-focused buyout house HgCapital is reportedly set to make a 2.1-times return on its investment in Isle of Man-based telecoms operator Manx Telecom.

The company’s IPO is set to give Manx Telecom a market cap of about £160m according to unquote, which said the investment would net it a gross IRR of 26 per cent.

Manx is preparing to sell its shares on the London Stock Exchange’s Alternative Investment Market for £1.42 each.

Hg bought into Manx in 2010 alongside specialist international telecommunications management company CPS Partners in a deal which valued the business at £158.8m.

Alex King, Head of TMT at HgCapital, said at the time, “While economies across Europe continue to be in a state of flux, the Isle of Man has proved an excellent base for companies, boasting over 25 years of unbroken GDP growth.

“It has a diversified economy coupled with an educated and skilled workforce. Furthermore, the Isle of Man has invested heavily in electronic services, for which the island has achieved a global reputation.

“Manx Telecom has a superb record of sustainable organic growth.

“The company also has an excellent management team to whom we will provide our full backing in taking the business forward.

“We see this as very much a growth investment for HgCapital and will continue to invest in supporting the organic growth of the business and in the form of bolt on acquisitions.”

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