LONDON (Alliance News) - Telecommunications firm KCOM Group PLC said on Wednesday it has agreed to a GBP504 million acquisition offer from Humber Bidco Ltd, a subsidiary of the Universities Superannuation Scheme.
The Universities Superannuation Scheme is a UK pension scheme for universities and other higher education institutions.
Under the acquisition's terms, USS will acquire KCOM for 97 pence per share, reflecting a 34% premium to KCOM's closing price of 72.5 pence on Tuesday.
Shares in KCOM Group were 34% higher at 96.90 pence on Wednesday afternoon.
The acquisition is conditional on gaining at least 75% in shareholder approval at both the court meeting and general meeting, as well as being sanctioned by the High Court of Justice of England and Wales.
KCOM expects the acquisition to be completed in mid-2019. So far the USS has obtained irrevocable acceptances from 149.1 million shares in KCOM, reflecting 29% of the company's entire issued share capital.
"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," said Interim Chair Patrick De Smedt.
"The board believes that the offer of 97p per share represents a compelling opportunity for shareholders to realise an attractive cash value in respect of their shares and recognises the quality of KCOM's businesses and the strength of their future prospects. For all these reasons, the board unanimously recommends that shareholders accept the offer," Smedt added.