(Alliance News) - TalkTalk Telecom Group PLC on Thursday said it has received a takeover proposal from major shareholder Toscafund Asset Management LLP.
Shares in TalkTalk were up 17% at 97.05 pence in London in morning trading, making it the best performer in the FTSE 250 index.
The offer for TalkTalk's entire share capital is priced at 97p per share, has a full unlisted share alternative, and is to be made by a newly formed company. TalkTalk has 1.15 billion shares in issue, meaning the offer would be worth around GBP1.12 billion.
Having considered the proposal's terms, TalkTalk has agreed to progress the proposal further with 29% stakeholder Toscafund, and is taking advice from its advisers.
Sky News reported in July that TalkTalk had rejected a GBP1.5 billion, 135 pence per share, takeover bid from Toscafund. At that time, Sky reported, the offer was rejected by the board - led by founder & Executive Chair Charles Dunstone.
The latest proposal from Toscafund includes a number of pre-conditions before any firm intension to make an offer is announced. This includes that Toscafund receives an irrevocable undertaking from Dunstone to support the offer, including election for any unlisted share alternative for his entire 30% holding.
An offer period has begun and Toscafund must either announced a firm intention to make an offer or walk away by November 5.
By Anna Farley; annafarley@alliancenews.com
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