Shares in Hull-based broadband firm Kcom have jumped more than 12 per cent after it unveiled a £563m takeover bid from investment bank Macquarie.
Kcom’s board had last month said it backed an offer of 97p per share from the trustees of the Universities Superannuation Scheme (USS) pension fund.
But in a dramatic move the firm today issued a statement withdrawing its support for the USS offer and unanimously recommending a 108p per share bid tabled by Macquarie Infrastructure and Real Assets.
“This offer provides our shareholders with even greater value in cash for their shares, as well as providing Kcom with a strong partner as we work to maintain, build and enhance our offering and position,” said Patrick de Smedt, interim non-executive chairman of Kcom.
Kcom said the offer represented a 49 per cent premium on its last closing price of 72.5p and an 11 per cent increase on USS’s bid.
The London-listed telecoms firm is the main broadband provider in Hull, which remains the only part of the UK not covered by BT’s Openreach network.
Virgin Media was among the firms reportedly eyeing a takeover of Kcom, though offers had dried up since USS tabled its bid in April.
The acquisition means Macquarie will take control of key fibre broadband assets as the government looks to boost the roll out of the new high-speed network across the UK.
Leigh Harrison, head of Macquarie Infrastructure and Real Assets for EMEA, said: “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.”