12th Jul 2019 18:19
(Alliance News) - Telecommunications firm KCOM Group PLC has accepted an offer from one of its suitors, after both put in two new bids on Friday afternoon.
Macquarie European Infrastructure Fund 6 SCSp, which is managed by Macquarie Infrastructure & Real Assets Europe Ltd, increased its offer for KCOM to 120.3 pence per share in cash, valuing KCOM at GBP627 million.
Meanwhile, Universities Superannuation Scheme Ltd made a third offer for KCOM at 113p, valuing KCOM at GBP589 million.
"In light of the superior proposal put forward by Macquarie as compared to the USS offer, the KCOM directors, who have been so advised by Rothschild & Co as to the financial terms of the Macquarie offer, consider the terms of the Macquarie offer to be fair and reasonable," said KCOM.
"Accordingly, the KCOM directors recommend unanimously that KCOM shareholders vote in favour of the scheme in respect of the Macquarie offer at the court meeting, and in favour of the general meeting resolution to be proposed at the general meeting, which meetings will be re-convened as soon as reasonably practicable."
These new bids came after on Thursday Macquarie upped its bid to 110.8p from 109.5p before. That offer was made because on Wednesday USS made a new 110p offer, trumping Macquarie's 109.5p offer which stood at the time.
USS's original offer was 108.5p, made on Monday, after an initial bid of 97p. The 108.5p bid was surpassed by Macquarie's 109.5p bid on Tuesday.
KCOM shares closed 0.2% lower on Friday at a price of 115.20p, having been at just 57.70p last November.
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