£627m offer wins the battle for listed telecoms giant KCOM

One of the world’s biggest asset managers has taken over Hull-based telecoms business KCOM with a massive bid of £627m.

Macquarie Infrastructure and Real Assets, trading as MEIF Fibre 6, had been locked in a fierce bidding war with rival would-be buyer Humber Bidco, which is a subsidiary of the Universities Superannuation Scheme (USS).

Macquarie’s win was revealed late this afternoon (July 12) at the end of a week-long auction process, where its huge bid easily trumped the Humber Bidco final offer of £589m.

Macquarie’s victorious bid for KCOM is equal to 120.3p per share, while the Humber Bidco final bid is equal to 113p per share.

Before the winning bid was announced, Macquarie had already upped its offer for KCOM to £578m.

Humber Bidco had previously said its bid for the telecoms and broadband firm was £566m – 108.5p per share.

Humber Bidco was the first business to bid for KCOM back in April, when it offered £504m for the business.

But its offer was overtaken by Macquarie last month, when that business offered £563m. Both firms then needed to fight it out in the auction, which only concluded at 5pm today.

Outlining the terms of its ultimately successful bid, Macquarie said: “Following the conclusion of Auction Day five, MEIF 6 Fibre is pleased to announce the terms of a revised increased cash offer for the entire issued and to be issued share capital of KCOM.

“Under the terms of the Acquisition, KCOM Shareholders who are on the register of members of KCOM at the Scheme Record Time will be entitled to receive for each KCOM Share 120.3 pence in cash.

“The Acquisition, at the increased price of 120.3 pence per KCOM Share in cash, represents an aggregate value of £627m for KCOM’s issued and to be issued share capital.

“Under the revised increased offer, fractions of pence will be paid to KCOM Scheme Shareholders and cash entitlements will be rounded up to the nearest penny.”