Digital 9 Infrastructure plc - DGI9 - Share Chat

This company invests in digital infrastructure assets and technologies including subsea fibre, data centres, terrestrial fibre, tower infrastructure, and small cell networks (including 5G).

Digital 9 clearly an out out mess
Debt to high etc. Was looking at this and cordiant digital last night. Need some more bargains in the infrastructure sector.

Before today’s collapse
Bigger discount and larger dividend
Cordiant digital
Smaller discount and significantly smaller dividend.
Cordiant more diversified AND covered it’s dividend twice.
Decided on cordiant


(Sharecast News) - FTSE 250-listed Digital 9 Infrastructure has decided to scrap its second-quarter dividend after a tough first half, as it continues to look for investment partners in its Verne Global data centres in Iceland, Finland and the UK.
The company, which invests in subsea fibre systems and data centres, swung to a loss of 6.63p per share in the six months to 30 June, compared with earnings of 3.43p a year earlier.

D9’s IFRS net asset value stood at £866m, down from £950m a year earlier, as it was hit by adverse foreign exchange movements and higher interest rates.

As such, the company reported a pre-tax loss of £57m, compared with a profit of £27m previously, due to property valuation movements.

“Whilst cognisant of the dividend target set out at IPO, the high interest rate environment and therefore the critical importance of prioritising liquidity and sustainable balance sheet management have compelled the board to not declare the Q2 2023 dividend and withdraw the dividend target for the year,” said chair Phil Jordan. “In light of this, the board will be commencing a formal consultation with shareholders.”

Meanwhile, D9 said it has “significantly progressed the syndication” of Verne Global, and has received “several” offers to either a co-controlling or majority stake in the business.

Due to sustained and accelerated customer demand for its facilities, the growth capital expenditure pipeline for Verne Global has jumped from £493m in January to £610m.

D9 said it is looking to use any funds from a Verne Global stake sale to pay down a significant portion of the its drawn revolving credit facility and cancel part of it, thereby reducing costs. At 30 June, some £356m was drawn under the £375m RCF."

Sale should go through early next year. Some payment held back until 2025 (might be 26).
Either way wipes out debt.
In my opinion share price has fallen far too far.
Nothing that buggers up share price than uncertainty.
An opinion offered on here thinks the NAV is around 70p.
Note part way through listening so you need to check

Shouldn’t take to long for reality to come to the fore.

Nothing in this share at the moment.
Somewhere for dividends to go.

This give a better idea of its real value ie minus the 2026 earn out

Basically your talking about a 84p nav if you exclude the earn out and at this point a 50% discount

Another update today and another fall in share price 12% down at the moment.
Added some, already had a tiny purchase now have a very small purchase.
Average cost 18.8p sell price today 17.40p.
So down 7.5%
Discount 80.5%
In wind down. Is it possible the nav is that inaccurate that it’s not possible to double your money?