Tuesday 23 April 2019

Brookfield paid $10m for stake in Imagine

Target: Imagine, led by CEO Sean Bolger, says it will bring high-speed broadband to a million rural homes
Target: Imagine, led by CEO Sean Bolger, says it will bring high-speed broadband to a million rural homes
John Mulligan

John Mulligan

Canadian investment giant Brookfield paid $10m (€8.8m) for its 31pc economic interest in Irish telecoms firm Imagine, according to its annual report.

The deal gave Brookfield and its investment partners a 55pc voting interest in the group, which is headed by Sean Bolger.

Brookfield's newly-published annual report also shows that the firm incurred about $2m in acquisition costs related to the Imagine deal.

The Canadian firm and institutional investors completed the Imagine transaction in October last year. They acquired a 50.1pc interest in the Irish firm, along with the 31pc economic interest, and the 55pc voting interest, giving it control of the telecoms company.

Brookfield said it acquired $6m (€5.2m) of goodwill as part of the deal, which represents the growth the partnership expects to receive from the integration of the operations. It also acquired $23m (€20.2m) in intangible assets, primarily comprised of customer relationships and a licence.

Had the Imagine acquisition been effective from January 1 last year, Brookfield said that the partnership would have recorded $6m in revenue from Imagine, and a net loss of $5m.

"Our recent acquisition of a provider of a high-speed fixed wireless broadband company in rural Ireland, Imagine, provides with us an initial entry point into technology services," Brookfield told shareholders in its annual report. "Our investment will fund additional capital as Imagine completes its rollout to customers. The technology sector is an area of huge potential growth for us, given the scale of opportunity and increasing number of opportunities."

Imagine's most recent publicly-available accounts show that it made a pre-tax loss of €15.8m in 2017. That was despite revenue increasing 12.6pc to €17.5m that year.

Last month, Imagine said it would spend €300m bringing high-speed broadband to one million rural homes in Ireland over the next 18 months.

Irish Independent

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