Telecoms investment specialist Macquarie has won the takeover race for KCOM, after it came in with a massive £627m bid on the final auction day.
Going into the finale of a week-long battle for KCOM, Macquarie was just ahead of rival USS after its bid of £578m on Thursday.
Both prospective buyers had to submit one final bid for KCOM, which were both revealed at 5pm on Friday.
Macquarie’s £627m offer was significantly higher than USS’ final bid of £589m, and significantly was worth over 7p more per KCOM share.
A statement posted on the Stock Exchange said: “Following the conclusion of Auction Day five (as specified in the Auction Rules), 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.
“The Acquisition, at the increased price of 120.3 pence per KCOM Share in cash, represents an aggregate value of £627m for KCOM…
“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.”
Macquarie’s final bid for KCOM was £38m higher than rival bidder USS.
It is now expected a new scheme document will be prepared, before KCOM’s board votes on the final offer.
Macquarie said it expected the scheme will become effective in the third quarter of 2019.
The week-long auction for KCOM has now come to a dramatic end.
While USS’ final offer was £16m higher than its most recent bid on Wednesday, Macquarie was willing to raise its offer even higher.
Watch: KCOM boss answers your questions
Its huge £627m bid was £39m bigger than its leading bid submitted on Thursday evening.
Speaking in June about Macquarie’s interest in KCOM, Leigh Harrison, head of MIRA, said: “KCOM has a strong local heritage that has been developed over more than a century and is well-positioned to continue to meet the evolving telecommunications needs of the region, which is why we have made this compelling offer to shareholders at an attractive premium.
“As an experienced, long-term telecommunications investor, we are committed to supporting KCOM’s sustainable growth.
“We look forward to partnering with management to increase broadband take-up in its core region and beyond, enhancing the quality of service delivery while giving local businesses and residents greater access to the opportunities that high-speed broadband can provide.”
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