State set for €40m windfall in sale of National Broadband Ireland stake

The State is expected to gain more than €40 million in a deal to sell 80 per cent of National Broadband Ireland to a Spanish investor.

The Government last month gave approval for the sale of the stake in NBI, the company which is responsible for rolling out the national broadband plan (NBP). This will see Oak Hill Capital and Twin Point Capital, early-stage investors in the broadband plan, sell their stakes to Asterion, a Spanish investor.

Government sources said the State would be in a position to claw back profits made by the investors. Under the terms of an agreement, if an investor sells on their share for a profit, they must pay back the State 25 per cent of the profit above 25 per cent over their original investment.

The contract requires ministerial approval for a change of ownership.

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The remaining 20 per cent of NBI will continue to be held by Irish American investor David McCourt

In an update sent to the Oireachtas communications committee, NBI said that Asterion has “completed its acquisition of 80 per cent of NBI” following agreement announced in July 2022 and ministerial approval on 19th October.

The remaining 20 per cent of NBI will continue to be held by Irish American investor David McCourt, through his investment vehicle Granahan McCourt, and Yakida, which is controlled by management in NBI.

David McCourt will remain as chairman of NBI, the committee was told, “ensuring continuity of control of the day-to-day operations and the rollout of the NBP will be executed by existing NBI management”.

The change in ownership does not result in any changes to the NBP contract, the committee was told.

In an email sent to stuff on Wednesday evening, NBI said it can “confirm that Asterion has now formally acquired an 80 per cent share of the company”.

“This change of ownership should be rightly seen as a vote of confidence in the success of the project to date and our collective efforts to get us to this point,” it said.