Digital 9 Infrastructure (DGI9 ) has shifted its plans for its largest investment, Verne Global, and now aims to sell the entire holding rather than just a stake.

In an attempt to win back investor confidence and following a consultation with shareholders the board has said it is ‘assessing the divestment’ of the Icelandic data centre operator.

DGI9 had been planning to sell part of its holding in Verne, which makes up 22% of the portfolio, through a syndication. However, a ‘shambolic’ set of announcements last month, which included revealing the Verne deal was behind schedule and scrapping the second quarter dividend, sent the investment company’s shares plummeting.

The shares jumped 3.5p, or 9.6%, to 40p this morning but remain well below the 55.4p they stood at before the dividend cut and closed at a 65% discount below asset value at 36.5p.

The board of Digital 9 said it had received indicative offers for a sale when looking at a syndication and is expecting to announce the terms of the deal next quarter.

The investor in the backbone of the internet said this route would ‘enable the company to accelerate its balance sheet deleveraging, deliver cash resources necessary for the company and group to strengthen their position, and further maximise shareholder value’.

Peel Hunt analyst Anthony Leatham agreed with the board’s assessment of the benefits but said the valuation and sale price will be ‘important in helping to address the negative sentiment’.  

DGI9, which is labouring under debt of £545m, announced earlier this month that it had appointed Goldman Sachs as its lead adviser to help it develop a ‘set of actions focused on maximising shareholder value’.

Following the Goldman Sachs announcement Stifel analyst Sachin Saggar said it was ‘unclear’ how the move would impact negotiations around Verne but ‘given poor sentiment, a majority sale will probably not provide the re-rating we thought possible post the dividend fiasco’.