Hampshire-based alternative network toob, which has deployed their own gigabit speed full fibre (FTTP) broadband network across South England and also harnesses CityFibre’s network in other UK areas, has suffered a blow today after investor INPP “elected not to commit further capital” to the provider and handed most of its original £24.1m investment off to debt holders.

At present toob, which has in the past secured up to £395m of funding (equity and debt), is primarily backed by investment from the Amber Infrastructure Group and the Guernsey-based International Public Partnerships (INPP). In addition, Ares Management’s Infrastructure Debt strategy acts as toob’s primary credit partner and debt financier.

NOTE: Toob’s own-built fibre network currently covers around 300,000 premises and the service is home to 140,000 customers (we estimate c.80-90k on-net, with the rest via CityFibre).

Toob’s most recent accounts currently go up to the end of December 2024, which saw them report an operating loss of £23.50m (2023: £19.48m), capex of £46.47m (2023: £38.68m), revenue of £14.03m (2023: £5.5m) and total liabilities of £299m (2023: £212m).

The operator originally aspired to cover 1 million premises across parts of Dorset, Hampshire, Surrey and Sussex by 2027. But like many other altnets those aspirations have in recent years come under pressure from the rising cost of build, stubbornly high interest rates and competition. Back in late 2023 the provider responded to this by focusing less on network expansion and more on commercialisation (here) and in mid-2024 they suffered some job cuts (here).

The latest significant development today comes from INPP, which has revealed that they won’t be putting any more money into the business and are giving up an investment previously valued at £24.1m, while retaining only £2.6m of exposure. Credits to Keith of Hardman & Co for the news tip.

INPP – Update regarding investment in toob

17 August 2026

International Public Partnerships Limited, the listed infrastructure investment company (‘INPP’ or ‘the Company’) announces the following update regarding its investment in toob.

toob is a fibre-to-the-premise network operator which has built its own network principally across Southampton and parts of South England, covering c.300,000 premises with over 140,000 customers.

INPP has previously highlighted the structural headwinds the UK’s altnet market is facing and its potential material adverse effect on toob’s business. Following extensive discussions, the Company has elected not to commit further capital to toob and subject to final terms, will transfer its equity interest to the debt holders for a de minimis amount (from £24.1m or c.0.9% of NAV at 31 December 2025). Following the completion of the transaction the Company’s remaining exposure in toob will be £2.6m, being an investment ranking pari passu with senior debt funding. As per the agreement with the debt holders, INPP will retain an entitlement to share in any future value realised upon a sale of toob.

Notwithstanding this transaction, and as previously noted in the portfolio update published in June 2026, the Company’s NAV per share guidance is unchanged and is expected to be broadly in line or marginally higher at 30 June 2026 when compared to 31 December 2025.

The performance of INPP’s other digital infrastructure investment, CommunityFibre (1.0% of NAV as at 31 December 2025), continues to be in line with expectations. The Company’s prior two investments in the UK digital assets achieved double digit IRRs, each generating significant shareholder value on exit.

The strategy is not uncommon for heavily indebted infrastructure businesses and is preferable to risking a disorderly failure. But rather than walk away with nothing, INPP has handed toob’s lenders control of its equity and appears to have negotiated a future-value participation in return (i.e. INPP might still benefit if toob’s lenders manage to, for example, sell the business for a good amount in the future).

In terms of what happens next, there’s naturally the prospect for future consolidation (e.g. CityFibre is a good natural fit given their existing partnership), although that side of the market has been moving rather slowly of late. The alternative might be for toob’s debt holders to restructure the business and give the underlying financials some greater strength. Time will tell.