Digital 9 Infrastructure, a prominent player in the digital infrastructure investment sector, has announced the sale of its stake in the EMIC-1 subsea cable project for $42 million.
The sale, expected to be finalized by March 2025, marks a significant development in the company’s ongoing strategy to streamline operations and reduce its financial commitments.
The EMIC-1 subsea cable system, which connects Europe, the Middle East, and India, is a carrier-neutral network platform that includes both subsea and terrestrial infrastructure. Despite its ambitious potential, the project has been impacted by geopolitical tensions in the Red Sea region, which led to challenges in its development.
As part of the transaction, Digital 9 Infrastructure will also be relieved of approximately $10 million in remaining construction commitments, further easing the company’s financial position. The $42 million sale price is a 15% discount to the project’s latest valuation of $49.6 million, as of June 30, 2024.
“This divestment reflects our strategy to reduce leverage and focus on our core assets,” said a spokesperson for Digital 9 Infrastructure. “We are committed to ensuring that our portfolio remains strong and aligned with our long-term investment goals.”
The company’s decision to sell its EMIC-1 investment is part of a broader asset management strategy that includes the potential sale of other holdings, such as its Irish telecom assets and equity interests in Elio Networks and Aqua Comms.
Industry experts believe the sale will help Digital 9 Infrastructure focus on more stable and high-return assets, aligning with the increasing demand for digital infrastructure in today’s rapidly evolving market.
The company’s restructuring is expected to enhance its ability to navigate future challenges in the digital sector and provide greater returns to its investors.
The EMIC-1 subsea cable project, once completed, promises to improve connectivity between key international markets. However, the geopolitical landscape has made its finalization uncertain, leading to the company’s decision to offload the asset.
For investors and analysts, the sale represents a key turning point in Digital 9’s strategy, as it seeks to reposition itself in the face of ongoing challenges and evolving market dynamics.
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