Stifel downgrades Digital 9 Infrastructure after casting doubt on valuations

Draws comparison to Hipgnosis

Stifel has downgraded Digital 9 Infrastructure from ‘positive’ to ‘negative’ due to what the broker said appears to be “materially incorrect” valuations, as well as a loss of confidence in the board’s decision-making process.

In a stock exchange notice today (28 March), DGI9 said the valuation of the portfolio as at 31 December was £1.08bn, which represents a 5.6% decline since 30 June 2023. The decline principally relates to a 16% fall in the value of Verne Global, which has been valued at £398.3m, including gross proceeds already received and deferred consideration due to be received from its sale to Ardian, as well as a possible earnout. Excluding Verne, the portfolio was valued at £684.1m, up 1.6% since 30 June and down 1.2% since the end of 2022.  Digital 9 Infrastructure shareholders overwhelmingl...