LONDON (Alliance News) - KCOM Group PLC on Monday said it had withdrawn its recommendation of an offer from a pension fund-backed by Humber Bidco Ltd, in preference of an offer from MEIF 6 Fibre Ltd.
The new offer price for the telecommunications firm is 108 pence per share in cash, 11 pence above Humber's 97.00p per share offer. The new offer's total value is worth GBP563 million.
Shares the Hull-based telecommunications company were up 15% at 111.19p early on Monday morning.
MEIF 6 is a wholly-owned indirect subsidiary of Macquarie European Infrastructure 6 SCSp, an investment fund managed by Macquarie Infrastructure & Real Assets Europe Ltd. Humber, meanwhile, is a subsidiary of the Universities Superannuation Scheme.
Macquarie Infrastructure & Real Assets is an asset manager, managing over EUR110 billion in assets as at the end of 2018. It has owned and invested in telecommunications infrastructure since the early 2000s.
KCOM said it had evaluated the MEIF 6 proposal and considered it to "represent a superior offer for KCOM's shareholders" versus the offer from USS. As such, KCOM's directors have withdrawn their recommendation of USS offer and will unanimously recommend the offer from MEIF 6.
The new offer is a 49% premium to KCOM's 72.5p closing share price on April 23, before KCOM's offer period began.
KCOM Interim Non-Executive Chair Patrick De Smedt said: "The board of KCOM is pleased to recommend MEIF 6 Fibre's cash offer for KCOM which represents an increase of 11p to the [USS] offer of 97 pence per KCOM share and a 49% premium to the undisturbed share price on April 23. 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."