GX Networks Acquires Pipex

GX Networks acquires Pipex Internet for approximately £55M, raising about £27.7M by way of an institutional placing

October 29, 2003

1 Min Read

LONDON -- GX Networks plc has acquired PIPEX Internet Limited ("PIPEX") for a total consideration of approximately £55 million and has raised approximately £27.7 million by way of an institutional Placing.

The consideration payable for the shares of PIPEX will be satisfied by the allotment of 80 million Consideration Shares to the vendors and the payment of approximately £50 million in cash.

The cash consideration has been financed through a new debt facility of approximately £15 million from Bank of Scotland Corporate Banking, the Placing, and approximately £10 million from the existing cash resources of the Enlarged Group.

The Placing of 443,200,000 shares at a price of 6.25p with institutional and other investors raised £27.7 million for the Company and was underwritten by Collins Stewart Limited.

GX Networks is in the process of being renamed PIPEX Communications plc and will commence trading on AIM under the new name on 29 October 2003 with the new trading symbol ["PXC"].

Stuart Gibson, Head of Telecoms & Media for Bank of Scotland Corporate Banking's Project Finance team, said: "The telecoms market is beginning to show encouraging signs of recovery and we are delighted to be supporting GX Networks' acquisition of PIPEX. This transaction demonstrates an increasing awareness of the exciting prospects for broadband development."

The New Shares and Consideration Shares have been admitted to the Alternative Investment Market as of 8.00 am on 28 October 2003.

Definitions used in the circular dated 3 October 2003 apply in this announcement unless the context otherwise requires.

GX Networks plc


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