CityFibre Holdings’ shareholders are in talks to inject hundreds of millions of pounds into the company as part of a refinancing deal that would provide it with fresh acquisition funds, according to a Sky News report.
Equity investors in the company, which include the Abu Dhabi sovereign wealth fund Mubadala, are negotiating over an injection worth around £500 million.
A deal, which could be finalised in the coming weeks, would form part of a wider balance sheet strengthening, which would include a substantial new debt-raise.
A syndicate of CityFibre's lenders, led by NatWest Group, this week appointed advisers from Lazard to assist them in talks with the company.
CityFibre's shareholders also include West Street Infrastructure Partners, a fund managed by Goldman Sachs, Antin Infrastructure Partners and Interogo Holding.
A CityFibre spokesperson said, "We are financing the business from a position of strength, with the full backing of our shareholders and investors.
"We look forward to further expansion as we launch Sky across our nationwide footprint later this year."