Telco specialist KCOM said it is taking an offer from a significant pension fund outfit to take the business into private hands
It could be the end of a difficult period for the telco specialist. KCOM issued a profit warning last year and asked BT executive Sutherland CEO Graham Sutherland come up with a cunning plan to get the outfit out of trouble. Instead, it seems the firm is taking a £504 million offer from Humber Bidco Limited a wholly-owned indirect subsidiary of Universities Superannuation Scheme Limited.
The firm provides voice and data services to 140,000 customers in Hull and East Yorkshire, has a public sector, and extensive enterprise customer lost across and through its national network services provides UK comprehensive connectivity support.
Patrick De Smedt, Interim Non-executive Chairman of KCOM, said that the Board was giving the offer it’s backing because of the potential to improve the fortunes of the firm.
“The Board believes that USSL’s offer for KCOM provides, on completion, both meaningful, guaranteed cash returns for shareholders as well as a strong, supportive partner in our endeavours to take the business forward to new successes”, he said.
Mike Powell, head of the private markets group at USSIM, said that it saw plenty of potential in KCOM and going private would benefit the business.
“We believe that KCOM is a high-quality business that is well-placed to grow and thrive under private ownership and that is why we have made this compelling offer to shareholders at an attractive premium. With the right capital support and assistance, we believe that KCOM’s management will be able to enhance the quality of its offering, delivering benefits for customers as well as sustainable, long-term returns”, he said.
Powell also indicated that this investment was made with a view on the longer term. “USSL’s track record as a long-term and supportive shareholder with extensive experience in regulated sectors makes us an ideal partner for KCOM”.
