The Macquarie investment fund has agreed the sale of its 26.5% stake in media services and transmission infrastructure provider Arqiva to an undisclosed buyer for just £16.5 million, implying a valuation of the company at £62 million. It represents a collapse in the value of the infrastructure assets over the price originally paid for them. The ultimate value of Arqiva is highly dependent on decisions about the future of digital terrestrial television transmission in the United Kingdom.
Following the announcement of the sale of the stake, Digital 9 Infrastructure plc, which retains a majority 51.8% shareholding in Arqiva, which is the largest asset in its portfolio, said the sale price was clearly priced well below its previous valuation.
Digital 9 paid $417 million for a 48% stake in Arqiva in 2022.
Arqiva derives a large portion of its income from transmission services provided to public sector broadcasters in the United Kingdom under contracts which expire from 2030.
Digital 9 noted that the valuation base case for Arqiva is determined by and highly sensitive to achieving a reasonable outcome on several material factors.
These include the outcome of a government consultation on the future of television distribution, broadcasting contract renewals for longer term extensions, and the refinancing of the capital structure of Arqiva.
D9 is planning a managed wind-down. Its board says that divesting of its stake in Arqiva before the resolution of these issues would be premature as it would not result in an acceptable outcome for realising shareholder value. It recently said that divestment discussions were expected to commence in late 2027.
The share price for D9 fell to below 6 pence, down from over 20 pence early in 2025, and a high of over 94 pence early in 2023.
The involvement of Macquarie in the transmission business dates back to the end of 2004, when a Macquarie-led consortium agreed to buy 100% of ntl:Broadcast for about £1.27 billion. That broadcast business was then renamed Arqiva in 2005. In April 2007, Arqiva acquired National Grid Wireless for £2.5 billion.