Financial News

  • 16 January 2014, 10:11

Former BT Telco Arm Plots £150m London Float

The main telecommunications provider on the Isle of Man is preparing for a float on London's junior stock market that will value it at around £150m.

Sky News understands that Manx Telecom, which was founded in the late 19th century, is expected to announce in the next few weeks that it will seek a listing on the Alternative Investment Market.

The move will provide an exit for Manx's main shareholder, the private equity group Hg Capital, and will form part of a bulging pipeline of listings being planned for 2014.

Liberum Capital, an investment bank, has been appointed to work on the flotation.

Manx has been through several changes of ownership since being set up 120 years ago, with BT at one stage owning the company, before it was offloaded as part of the demerger of MMO2, the mobile phone group which was subsequently acquired by Telefonica of Spain.

Employing several hundred people, Manx has a track record of technological innovation, becoming the first company in Europe to launch a live 3G service.

Last year, the company made a pre-tax profit of around £25m.

Manx's management team will begin holding discussions with City institutions before the end of January, one insider said on Wednesday.

A spokesman for Hg Capital declined to comment.

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