Bids reach £566m in race to takeover listed telecoms giant KCOM

One of the two companies battling to buy Hull-based listed telecoms and broadband  firm KCOM has raised its offer to £566m.

Humber Bidco, a subsidiary of the Universities Superannuation Scheme (USS), has now said its bid for the firm is £566m; 108.5p per share. The firm was the first company to bid for KCOM in April, when it offered £504m for the business.

The firm’s offer was overtaken by Macquarie last month, when that business offered £563m. The firms are battling it out in a week-long auction process that will conclude on Friday.

USS said: “The Increased Offer values the entire issued and to be issued ordinary share capital of KCOM at approximately £566 million. 

“Under the Increased Offer, fractions of pence will be paid to KCOM Scheme Shareholders and cash entitlements will be rounded up to the nearest penny.

“If any dividend or other distribution is declared or paid in respect of KCOM Shares on or after the date of this announcement, Bidco will reduce the Increased Offer price by the amount of such dividend or other distribution for each KCOM Share, in which case eligible KCOM Shareholders will be entitled to receive and retain such dividend or other distribution.

“It is intended that the Increased Offer will be effected by means of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act. In accordance with Rule 32.1 of the Takeover Code, Bidco anticipates that the Revised Scheme Document containing such details of the Increased Offer as are required by the Panel will be published by KCOM in due course.”