Mast operator Arqiva set for £6bn float to fuel expansion

● Tower business looks to exploit growth in demand

Television and mobile infrastructure firm Arqiva has unveiled plans for a stock market listing which could value the business at as much as £6 billion.

The company, owned by Canada Pension Plan Investment Board and Macquarie, is Britain’s largest owner of mobile, TV and radio towers and works with the likes of BBC, ITV, Channel 4, Channel 5.

Arqiva plans to raise £1.5bn through the initial public offering (IPO) on the London Stock Exchange and will use the proceeds to pay down debt.

The deal gives the group a market value of between £4.5bn and £6bn including debt. The IPO comes after an aborted attempt to sell the firm privately.

Arqiva chief executive Simon Beresford-wylie said: “Arqiva provides the critical infrastructure and skilled workforce that ensures the effective operation of the UK’S television, radio, telecoms and smart meters.

“We are very much looking forward to bringing our unique combination of leading assets and skills to the public markets.”

In documents filed yesterday, Arqiva said that it is well positioned to provide shareholders with “generous” dividends and expects to pay out £195 million this year.

In the year to June, the firm booked revenue of £943.8m and it yesterday highlighted the visibility it has over future revenues. As at 30 June, around 90 per cent of the group’s expected revenues for the current financial year were already contracted.

It added: “The group’s broad and long-life asset base enables it to generate revenues underpinned by long-term inflation-linked contracts, as demonstrated by a strong orderbook of £5.7bn as at 30 June.”

The company said that it expects to grow the firm by using its infrastructure network to meet the growing demand for data, smart energy and water metering “internet of things” applications.

Mike Parton, Arqiva chairman, said: “The IPO will enable Arqiva’s leadership team to continue to execute on its proven strategy, whilst pursuing additional growth opportunities through our tower portfolio and investing in next generation 5G and fibre technology and returning significant amounts to shareholders.

“Following the IPO, the group’s balance sheet will be appropriate for an asset rich infrastructure company with long-term contracts, bluechip clients and strong cash flows.” The first hotel in Edinburgh from Hampton by Hilton has opened its doors, adding to four prop erties from the brand in Scotland and creating 40 jobs. The 228-room Hampton by Hilton Edinburgh West End is in Fountainbridge, near the Edinburgh International Conference Centre, and on the former site of the North British Rubber Company. The hotel’s general manager Paul Wood said: “This is one of Hilton’s fastest-growing brands and I cannot wait to see the results.”