Cityfibre Infrastructure Holdings plc (CFHL)
KCOM agrees sale of UK network infrastructure
KCOM Group has agreed the sale of its national network infrastructure (outside of Hull and East Yorkshire) to CityFibre Infrastructure Holdings for an all cash consideration of Â£90.0m, subject to approval by CityFibre shareholders.
The group has entered into an arrangement with CityFibre for certain services to support existing commitments and customer arrangements. The cost of this arrangement, over a five year term, is Â£5 million per annum. Furthermore, under this arrangement certain operational costs of approximately Â£1 million per annum will transfer to CityFibre, resulting in a net cost to the Group of approximately Â£4 million per annum. The Group has the option to extend the term of this arrangement up to 15 years.
As at 30 September 2015, these assets had a Net Book Value of Â£41.8 million. There was no ongoing associated depreciation charge in the six month period to September 2015 (2014: nil).