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Investment firm buys nmcn divisions out of administration

Investment company Svella, which acquires distressed and underperforming businesses, has bought four divisions of nmcn out of administration, saving 680 jobs.

Svella has acquired nmcn’s telecoms, plant hire, transport and accommodation business divisions.

The deal will enable the telecoms division to continue servicing customer contracts, including telecoms infrastructure services for BT, Virgin Media and CityFibre.

Acquisition of the plant hire, transport and accommodation businesses, which include a fleet of plant, machinery, vehicles, mobile offices and welfare units will allow Svella to ensure the telecoms business has access to the assets it needs to trade as a going concern.

Svella will also be able to hire these assets to the other divisions of nmcn, which may be acquired out of administration by other parties.

Publicly listed nmcn’s shares were suspended in June after the company experienced delays getting its 2020 accounts signed off by auditors. It missed a series of later dates to file its accounts and warned last week that it would miss the latest deadline of 1 November. That meant a £24m refinancing deal with Svella and other investors, agreed in June, would not be completed as planned.

Andrew Tinkler, Svella chairman, said: “The acquisition of the telecoms, plant, transport and accommodation business divisions by Svella safeguards over 680 important skilled roles and secures continuity of service for key national telecoms infrastructure clients.”

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