Host Europe Purchases Freedom4 for £120m

European telecommunications provider Freedom4 Communications, previously known as Pipex Communications, announced on Tuesday it has signed an accord to sell its hosting and network service division to Host for £120 million.

Set up by Freedom4 chairman Peter Dubens, Host Europe is a recently formed subordinate of investment firm, Oakley Capital.

Once the business deal is concluded, 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 at this moment consist exclusively of its wireless mutual venture, which was set up with Intel Capital, providing wi-fi and wi-max networks to residents in Milton Keynes and Manchester, UK.