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Oakley advises on float of Manx Telecom PLC, raising £156.3 million

February 5, 2014

- Largest ever telecommunications services IPO on AIM Oversubscribed with strong institutional shareholder base 100% exit achieved for HgCapital Partners LLP (" HgCapital ") Approximately 225m enterprise value Intention to pay 7% dividend yield calculated at the Placing Price 50th full completed deal by Oakley since launch in late 2007 Oakley team advises on many of UK market telecoms IPOs since 1999 Oakley Capital Corporate Finance ("Oakley") has acted as sole Financial Advisor to Manx Telecom Plc (AIM: MANX) (" Manx Telecom "), the leading communication solutions provider on the Isle of Man , which has announced its intention to list on the AIM market following a successful institutional placing ("Placing"). The Placing, which is conditional on Admission and fully underwritten by Liberum Capital Limited , the Nominated Advisor to Manx Telecom which worked alongside Oakley, is expected to raise 156.3 million from institutional investors (89.2 million raised by the Company and 67.2 million from a sale by existing shareholders). The IPO is believed to be the largest ever telecoms services IPO on AIM. Working with existing shareholders, HgCapital , CPS Partners LLP and the management team, Oakley developed the IPO idea with Manx Telecom in 2013. HgCapital and CPS have agreed to sell all of their interests in the Company, providing them with a 100% exit. The total number of ordinary shares in issue at Admission will be 112,822,287, giving the Company a market capitalisation of approximately 160.2 million at the Placing Price and a free float of approximately 98%. The strong institutional shareholder base achieved through the IPO creates a new phase for Manx Telecom Plc as an independent quoted company. The IPO of Manx Telecom is one of the largest deals completed to date by Oakley and its 50th full completed transaction since the firm was created in late 2007. In addition, members of Oakley have advised on many of the London Stock Market IPOs of telecoms businesses over the past 15 years. Deals completed include the IPO of Kingston Communications (now KCOM) in 1999, Virgin Mobile in 2004, Alternative Networks in 2005, the readmission of Daisy Group in 2009 and the IPO of Manx Telecom in 2014. Chris Godsmark , joint Managing Partner at Oakley said: "We are delighted to have assisted the shareholders in putting together the IPO of Manx Telecom . We helped to prepare the business for a flotation, developing the equity story, the valuation model and, working with Liberum , assisted marketing the IPO to institutions. This has been a highly successful IPO with a full exit achieved for HgCapital and an excellent institutional shareholder base for Manx Telecom moving forward." Christian Maher , joint Managing Partner at Oakley, continued: "The IPO of Manx Telecom shows that the public markets are a viable alternative to private equity or trade sales for assets. We believe that the market remains receptive for strong telecoms assets with robust recurring revenues and strong cash conversion. We believe our understanding of the telecoms sector and market knowledge put us in a good position to assist other operators as they eye potential IPOs later this year and next." For more information, please contact: OCCF Tel: 020 7666 9000 Christian Maher Chris Godsmark Powerscourt Tel: 020 7250 1446 Juliet Clarke / Nick Woods Notes to Editors Oakley is an independent, mid-market, Pan-European corporate finance firm offering specialist advice across a range of sectors including Telecoms, Media, Technology , Online, Datacentres and Hosting. Oakley offers a combination of M&A, fundraising and IPO advice to public and private companies and equity capital market advice to retained clients. Established in 2007, Oakley has advised on 50 completed deals with a combined value of over 3.7bn and has built an experienced team of senior professionals with a deep expertise particularly within the telecoms, media, technology, online, datacentres and hosting sectors. Recent transactions include advising Cinven private equity on its acquisition of Host Europe, advising MDNX on its acquisition of Easynet , and advising InTechnology Managed Services on its disposal to Redcentric plc . With a global network of sector specific company contacts and fund management relationships, Oakley has built a significant roster of some of the UK's leading listed TMT companies including TalkTalk , Telecity , Cable and Wireless Communications , KCOM, Daisy and Manx Telecom . About Manx Telecom Manx Telecom Plc is the leading communication solutions provider on the Isle of Man . The Company and its subsidiaries offer a wide range of fixed line, broadband, mobile and data centre services to businesses, consumers and the public sector on the Isle of Man and a growing portfolio of innovative solutions to customers off-Island. The Group has a leading market position on the Isle of Man in its fixed line, broadband, mobile and data centre businesses. The Group has grown revenue steadily since 2007. In the financial year ended 31 December 2012 , the Group increased revenue by 4.7% on FY12 to 72.4m, generating operating profit of 15.1m (up 28.5%) and adjusted EBITDA* of 24.6m (up 15.2%). For the six-month period ended 30 June 2013 , the Group grew revenue by 4.5% on H1 2012 to 37.9m, generating an operating profit of 8.5m (up 8.2%) and adjusted EBITDA* of 13.3m (up 4.8%). * This is based on income (or loss) from continuing operations, before, (i) interest, (ii) tax expense, (iii) depreciation and amortisation and then adjusted for Management analysis of non-recurring business expenses and revenues and other exceptional items. .


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Source: M2 PressWIRE


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