British asset manager Aberdeen (ABDN.L) is set to take an estimated £200 million ($271.72 million) hit to one of its infrastructure funds after UK altnet broadband provider Airband entered administration.
📌 Key Numbers & Transaction Metrics:
- ~$271.72 Million (£200M) Hit: Expected write-off taken by Aberdeen after halting further capital injections into Airband.
- Single-Digit Millions Sale Price: Airband’s assets and customer base were acquired by Macquarie-backed rival Voneus for a sum in the single-digit millions (per FT reports).
- Major Lenders Impacted: European banking giants HSBC and Lloyds are also taking write-downs on their loans as part of the asset sale.
💡 Industry Context & Market Pressures:
- UK Fibre Altnet Crisis: Airband’s collapse highlights severe headwinds facing smaller UK alternative network providers (altnets), including surging build costs, delayed subscriber acquisition, aggressive market competition from BT, and tight refinancing conditions.
- Portfolio Diversification: Aberdeen confirmed that despite the Airband write-off, the broader infrastructure fund remains diversified and on track to deliver positive overall returns to investors.