March 18, 2008 — (WEB HOST INDUSTRY REVIEW) — European telecommunications provider Freedom4 Communications (freedom4.com), formerly known as Pipex Communications, announced on Tuesday it has signed an agreement to sell its hosting and network service division to Host Europe (hosteurope.com) for £120 million.
Started by Freedom4 chairman Peter Dubens, Host Europe is a newly formed subsidiary of investment firm, Oakley Capital (oakleycapital.com).
Once the transaction is completed, Freedom4 Communications says it will return up to £156.9 million to shareholders through a tender offer.
Oakley Capital says its subsidiary Oakley LP will issue £20 in vendor loan notes, assume around £10 in debt and pay the rest in cash.
Last year, Freedom4 sold its Pipex consumer broadband and telephony business to Italy’s Tiscali for £210 million. The company’s operations will now consist solely of its wireless joint venture, which was set up with Intel Capital, providing wi-fi and wi-max networks to residents in Milton Keynes and Manchester, UK.
Pipex renamed itself to FREEDOM4 Communications as the company shifted its focus towards offering business-strength Internet services and hosting solutions.
