An ultrafast broadband provider which targets affluent parts of Central London is hunting a massive funding boost amid a government-led effort to accelerate the rollout of high-speed internet services across the UK.
Sky News has learnt that G.Network, which is privately owned, has hired investment bankers from Rothschild to court new backers during the coming months.
Sources said on Sunday that G.Network was expected to seek approximately £200m from the sale of new shares, with hundreds of millions of pounds raised from private debt markets.
The scale of the likely fundraising underlines the rapacious landgrab taking place among full-fibre broadband providers as they seek to establish their services in an increasingly competitive market.
G.Network’s planned financing has emerged days after CityFibre Holdings announced that it would spend £1.5bn to extend its network to cities including Brighton, Glasgow and Sheffield.
CityFibre recently completed the £200m takeover of TalkTalk’s FibreNation broadband infrastructure arm – a deal that had been delayed by Labour’s pre-election pledge to nationalise BT Group’s Openreach unit.
This week, Rishi Sunak, the new chancellor, is expected to announce a big commitment to funding next-generation broadband in his inaugural Budget.
G.Network, which has sprung up alongside the likes of Hyperoptic and Gigaclear among a second tier of players in the market, is part-owned by Cube Infrastructure Managers.
Its most recent publicly disclosed financing, in 2018, saw it raise £60m to fund its rollout.
At the time, it said the capital would provide Fibre-to-the-Premises (FTTP) connectivity to more than 120,000 premises across London.
G.Network has become a favoured supplier to hedge funds and other financial sector businesses in districts such as Mayfair which rely on ultrafast communications services for trading and other activities.
A G.Network spokesman declined to comment.