Legend Internet Plc – Strategic Acquisitions Update

(Shareholders Approve Acquisition of Microfinance Bank and Telecommunications/ISP Operations)

Transaction Overview

Legend Internet Plc announced that shareholders have approved the acquisition of:

1. A licensed Microfinance Bank
2. A licensed Telecommunications and Internet Service Provider (ISP) operating in Nigeria

The acquisitions were approved during the company’s 2nd Annual General Meeting held in Abuja on 7th November 2025.

Purpose of the Acquisitions:

• Diversify Legend’s digital and financial service offerings
• Integrate banking and internet services into its existing fibre-optic network
• Enhance nationwide connectivity and service portfolio

About the Acquired Entities

• Licensed Microfinance Bank: Expected to provide digital financial services and support payments and subscription services for Legend’s growing broadband customer base.
• Licensed Telecommunications/ISP Operator: Will expand Legend’s service footprint, adding existing networks and customer base to complement Legend Fibre and Legend Wi-Fi services.

The acquisitions are expected to accelerate Legend’s ambition to become a fully integrated digital services provider, combining high-speed internet, telecom services, and financial solutions under one platform.

Strategic Rationale

The acquisitions align with Legend’s long-term growth strategy:

• Service Integration: Offering bundled telecom, internet, and financial services to retail and corporate customers.
• Market Expansion: Immediate access to the acquired companies’ infrastructure and client base, reducing rollout time for new services.
• Revenue Diversification: Generating additional revenue streams beyond core broadband services.
• Innovation Enablement: Leveraging existing networks to deploy advanced solutions like FTTR (Fibre-to-the-Room) and in-app financial services.

Analyst Commentary

“These acquisitions are a critical step for Legend Internet to transform from a broadband-focused ISP into a multi-service digital ecosystem. By integrating telecom and financial services, Legend can capture more value from its existing fibre infrastructure, while accelerating revenue growth and customer retention. Investors should view this as a strategic expansion that strengthens the company’s competitive positioning in Nigeria’s digital economy.”

Key Implications:

• Access to additional customer base and network assets
• Potential for bundled service offerings and cross-selling
• Strengthened long-term growth and resilience in revenue streams

Next Steps

1. Completion of acquisition agreements and regulatory approvals
2. Integration of Microfinance Bank and Telecommunications/ISP operations into Legend’s platform
3. Launch of bundled broadband, telecom, and financial services for customers
4. Monitoring of operational synergies and cost efficiencies from combined operations

Conclusion

Legend Internet Plc’s approved strategic acquisitions represent a transformational move in the company’s post-listing expansion journey. By combining telecom, broadband, and financial services, Legend is well-positioned to diversify revenue, enhance service offerings, and strengthen its leadership in Nigeria’s digital services sector.

Part 2

Legend Internet Plc – Capital Raise and Strategic Expansion Update

(Shareholders Approve N150 Billion Capital Raise and Strategic Acquisitions)

Transaction Overview

Legend Internet Plc (“Legend” or “the Company”) announced that shareholders have approved plans to raise up to N150 billion in additional capital at the company’s 2nd Annual General Meeting held in Abuja on 7th November 2025.

• Capital Raise Size: Up to N150 billion
• Instrument Mix: Debt and Equity
• Purpose: Fund nationwide expansion and strategic acquisitions

The capital raise follows Legend’s April 2025 listing on the Nigerian Exchange (NGX) and positions the company to accelerate its fibre-optic and internet services footprint across Nigeria.

Share Capital Update

Shareholders approved:

• Increase in Share Capital: Up to 10 billion ordinary shares, ranking pari passu with existing shares
• Strategic Acquisitions:
  1. Acquisition of a licensed Microfinance Bank
  2. Acquisition of a licensed Telecommunications and Internet Service Provider operating in Nigeria

These moves are intended to complement Legend’s core internet infrastructure business and expand its service offerings in digital banking and internet connectivity.

About Legend Internet Plc

Legend Internet Plc is a leading provider of high-speed internet services in Nigeria, offering:

• Legend Fibre (FTTH): Nationwide fibre-optic broadband for homes and businesses
• Legend Wi-Fi: Public network connectivity
• Wholesale Bandwidth Services: Supplying bandwidth to enterprise clients

Recent Milestones:

• April 2025: Listed on NGX as LEGENDINT at N6.20 per share
• May 2025: Launched FTTR by Legend – Nigeria’s first Fibre-to-the-Room service
• October 2025: Agusto & Co. assigned Bbb- (long-term) and A3 (short-term) ratings

Financial Performance (FY2025)

• Revenue: N1.19 billion (up from N1.13 billion in FY2024)
  • Legend Fibre: N1.12 billion
  • Wholesale Bandwidth: N37.6 million
  • Legend Wi-Fi: N22.2 million
• Cost Management: Sales expenses fell 6.8% to N429.6 million
• Gross Profit: N761.4 million (up from N677.4 million)

Operating Performance:

• Operating Profit: N201.2 million (down from N309.8 million due to higher administrative costs)
• Administrative Expenses: N560.1 million, up 52.3% (staff costs and depreciation)
• Finance Costs: N28.5 million
• Profit Before Tax: N172.6 million (down from N285 million)
• Net Profit After Tax: N172.6 million (up 44.5% from N119.4 million)

Balance Sheet Highlights:

• Total Assets: N3.3 billion (up 10.3%)
• Retained Earnings: N734.5 million (up from N561.9 million)

Strategic Rationale

The capital raise and acquisition plans align with Legend’s long-term growth strategy:

• Expand Nationwide Fibre Coverage: Strengthen market leadership in FTTH and Wi-Fi services
• Diversify Service Offering: Leverage microfinance and telecommunications acquisitions for integrated digital solutions
• Support Innovation: Further deployment of FTTR technology for enhanced in-home and business connectivity
• Financial Flexibility: Access to additional capital to fund growth initiatives without compromising balance sheet stability

Analyst Commentary

“Legend Internet’s capital raise demonstrates strong shareholder confidence in the company’s growth trajectory. With strategic acquisitions and innovative services like FTTR, Legend is positioning itself as a fully integrated digital services provider in Nigeria. While administrative costs are rising, revenue growth and prudent cost management support sustainable profitability. The Bbb- long-term rating underscores the company’s credible credit profile for investors and lenders.”

Key Implications:

• Strengthened balance sheet and enhanced liquidity for expansion
• Potential for higher market share through acquisitions and new service lines
• Increased investor confidence through approved share capital increase and strategic direction

Next Steps

1. Completion of capital raise (debt and/or equity issuance)
2. Integration of acquired Microfinance Bank and Telecommunications/ISP operations
3. Expansion of fibre and FTTR networks nationwide
4. Continuous monitoring of operating costs to support margins

Conclusion

Legend Internet Plc’s approved capital raise and acquisition plans mark a significant milestone in its post-listing growth journey. With strong revenue performance, innovative service offerings, and strategic acquisitions, the company is well-positioned to solidify its leadership in Nigeria’s broadband and digital services sector while delivering long-term shareholder value.