The Financial Reporting Council has begun an investigation into the audit by PricewaterhouseCoopers of the 2023 results of Digital 9 Infrastructure (DGI9).

DGI9 became a notorious case of over-valuation after its net asset value was more than halved in 2024 by a new board and InfraRed Capital Partners, which replaced Triple Point as fund manager after shareholders voted to wind down the company in March 2024.

As we reported last September, a subsequent review of around £270m, or 40%, of valuations in the 2023 annual report, concluded there was a £111.5m overstatement of Aqua Comms, the Irish subsea cable operator and Arqiva, the UK broadcasting infrastructure platform.

It said the shortfall was “driven by an incorrect allocation of working capital between the established and growth constituent parts of the business along with related adjustments to certain capital expenditure assumptions and the treatment of tax losses”.

The FRC said the decision to open the investigation by its enforcement division was made on 16 December. It said this did not indicate that the FRC had made, or would make, any findings of a breach by PwC. 

DGI9 shares have dwindled to just 6.2p from 116p in September 2022.

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