STAR fund manager Neil Woodford yesterday booked a multi-million pound profit as one of his investee companies announced a deal with Vodafone to roll out Virgin Mediastyle ultrafast broadband to 5m UK households.
London-listed CityFibre signed a tie-up with the FTSE 100 mobile giant to plug fibre cables directly into premises across the country.
With CityFibre shares rocketing more than 40 per cent Woodford made £16m in one day on his 18 per cent stake in the firm. Woodford's former employer, Invesco, also gained from its similarly-sized stake.
The gains may come as some consolation after the same duo shouldered colossal losses backing crisis-hit Provident Financial.
Yesterday's agreement will see Vodafone work exclusively with CityFibre to deliver a "fibre-to-thepremises" network. Pockets of similar networks exist in the UK across a number of providers with Virgin Media the best-known brand for delivering such a product.
Vodafone has previously held talks with Virgin Media owner Liberty Global over a potential UK tie-up.
Work to plug in the first 1m premises will start in the first half of next year and be completed by 2021. Coverage could be extended to a further 4m homes by 2025.
Vodafone UK chief executive Nick Jeffery said Britain's broadband had "fallen far behind the rest of the world, trapped by the limited choice available on legacy networks".
(c) 2017 City A.M., source Newspaper