Spain’s Asterion Industrial Partners also received €31m last year with over 140,000 premises now connected to network
The majority owner of the company behind National Broadband Ireland, Spain’s Asterion Industrial Partners, has received a further €18.2m in dividends so far this year, on top of €31m in 2024.
Today’s News in 90 Seconds – Friday, August 29
Asterion paid about €425m for a near 80pc stake in the company behind National Broadband Ireland in 2022. As part of the acquisition deal, it is entitled to a contractually stipulated investment rate of return of 15pc.
The State’s wholesale broadband network has been designed by and is being built and operated by National Broadband Ireland, or NBI Infrastructure, which is a subsidiary of a firm called Metallah. It sells capacity in the network to broadband firms that can then offer broadband products to customers.
Evergreen Bidco, a company owned by Asterion, acquired its near 80pc stake in Metallah.
It bought the holding from Oak Hill Advisors, Twinpoint Capital and other minority shareholders. The remaining 20pc is owned by Tedrad and David McCourt’s Granahan McCourt Capital.
As part of the sale deal, there’s an earn-out clause. The potential earn-out amount is equal to 50pc of the accumulated proceeds received by Asterion in excess of the amount required for it to achieve a contractually stipulated investment rate of return of 15pc on the investment amount.
“The company considered the indicated option price to be €56.6m,” note the accounts for Evergreen Bidco.
Given that the earn-out relates to 50pc of the proceeds in excess of a return on Asterion’s investment of 15pc, the potential earn-out has been calculated at €28.3m.
Newly-filed accounts for Evergreen Bidco confirm that the latest €18.2m dividend it received from Metallah was paid in May this year.
“Reflecting strong take-up and progress on deployment achieved to date, the company’s subsidiary Metallah commenced distributions during the financial year,” confirm the Evergreen Bidco accounts for 2024.
“Distributions are commensurate with Metallah’s ability to meet its obligations, in line with the provisions of the contract with the State,” the accounts note.
As of this month, over 400,000 premises including business, farms and homes, across the country can now connect to high-speed broadband that has been rolled out under the National Broadband Plan (NBP). There are a total of 564,000 premises included in the intervention area under the NBP, covering 96pc of Ireland’s land mass and about 23pc of the population.
Just over 140,000 premises have already connected to the network. Take-up rates average 35pc and have approached 60pc in areas where the network has been live the longest, such as the rural areas near Athlone, Castlebar and Emyvale. Fibre broadband is also live on 19 offshore islands, including Hare Island, Collanmore Island and Rutland Island.
Metallah generated revenue of €365.1m in 2023 and made a €30.3m operating profit. Its pre-tax profit was €7.9m.
During 2023, the company received €275m of subsidy income from the government, compared to €163m in 2022, reflecting what the company said was “strong progress” in rolling out the NBP during the year.
source