SINGAPORE – Värde Partners, a leading global alternative investment firm, today announced that an investor consortium including Värde, Bardin Hill Investment Partners LP and Portsea Asset Management, has agreed to sell its stake in GCX Holdings Limited (“GCX”), a leading global data communications service provider and owner of one of the world’s largest private subsea fiber optic networks, to 3i Infrastructure plc. 3i Infrastructure will be investing c.$512m to acquire 100% of GCX.
GCX provides high-bandwidth connectivity to a range of blue-chip customers including hyperscalers, telecommunications operators, new media providers and enterprises. Its 66,000km of cables span 46 countries from North America to Asia, with a particularly strong position on the Europe-Asia and Intra-Asia routes.
“Having initially invested as a bondholder in GCX, we were pleased to support the company’s recapitalization and continue working with the business in our capacity as a shareholder,” said Sandeep Chandak, Managing Director at Värde Partners.
“GCX’s successful restructuring, led by Värde in 2019, reflected our belief in GCX asset’s long-term value and the underlying strength of the business. As the company’s largest shareholder, we have worked closely with Bardin Hill, Portsea and other stakeholders to unlock the potential of the business by enhancing its operating model and capitalizing on the critical role GCX plays connecting markets across the world.”
Pratik Desai, Partner at Bardin Hill Investment Partners LP, added, “We invested in GCX because we recognized the tremendous potential of the business over the long-term and our ability to help reposition the company to realize that potential. We are pleased with the positive momentum of the business over the past two years, during which time we worked collaboratively with Värde and Portsea to instill a best-in-class, experienced management team, improve operational efficiencies and ensure GCX was best positioned for continued success. We are confident in 3i Infrastructure’s ability to lead GCX through its next chapter and look forward to watching the company continue to grow its leadership position in the global data communication sector for years to come.”
The transaction is expected to be completed by mid-year 2022 subject to customary conditions and regulatory approvals.
About Värde Partners
Värde Partners is a leading global alternative investment firm with roots in credit and distressed. Founded in 1993, the firm has invested $85 billion since inception and manages $14 billion on behalf of a global investor base. The firm’s investments span corporate and traded credit, real estate and mortgages, private equity and direct lending. Värde employs more than 300 professionals worldwide with offices in Minneapolis, New York, London, Singapore and other cities in Asia and Europe. For more information, please visit www.varde.com.
About Bardin Hill
Bardin Hill is a leading investment management firm with core competencies in opportunistic, performing, and private credit, as well as event-driven strategies. Based in New York, Bardin Hill currently manages $6 billion and employs approximately 65 professionals dedicated to rigorous investment analysis, extensive due diligence, and a disciplined approach to capital formation. For more information, please visit www.bardinhill.com.
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