(Correcting offer value in headline.)
LONDON (Alliance News) - Shares in Manx Telecom PLC spiked Tuesday after the Isle of Man broadband provider announced it has accepted a takeover bid from infrastructure investment firm Basalt Infrastructure Partners.
Shares in Manx Telecom were up 14% at 214.52 pence each.
Manx Telecom, separately, reported a rise in revenue in 2018, with a flat pretax profit and upped its total dividend.
The company said it has accepted an offer from Kelion Bidco Ltd, a newly-incorporated company owned by Basalt, which values Manx Telecom at GBP255.9 million.
Shareholders will receive 215 pence in cash under the offer, with 207.1p representing the offer price but shareholders will also be entitled to a 7.9p interim dividend, announced in Manx Telecom's interim results.
The 215p offer represents a 31% increase over Manx Telecom's share price in the three months to March 12, being the last business day before the date of the offer.
The offer is 51% higher than Manx Telecom's IPO placing price of 142p when the company listed on London's AIM in 2014.
Manx Telecom said its unanimously recommends shareholders vote in favour of the offer.
In 2018, Manx Telecom's pretax profit was broadly flat at GBP11.6 million. The company's revenue increased 3.8% to GBP81.5 million from GBP78.5 million in 2017.
The company's Fixed Line, Broadband & Data revenue decreased 2.2% to GBP30.8 million but its Mobile revenue increased 12% to GBP22.3 million. Manx Telecom's Global Solutions unit saw a 5.5% rise in revenue to GBP17.4 million.
Manx Telecom said the decrease in its largest unit - Fixed Line, Broadband & Data - could be attributed to a decrease in fixed line subscribers, which, according to the company, is in line with industry trends.
The Mobile unit's growth was attributed to successful promotions throughout the year, the release of additional products and a "boost" from changing to the IFRS 15 accounting method.
Manx Telcom declared a final dividend of 7.9 pence per share, 5.3% higher than 2017's final dividend, resulting in a total dividend of 12.0p, 5.3% higher than the total distributed in 2017.
"2018 was another year of robust performance for Manx Telecom. Thanks to the hard work of our people, our on-island telecoms business has remained stable - with a solid performance in Fixed Line, Broadband & Data Services, and growth in Mobile - while our international growth business, Vannin Ventures, has seen growth in Global Solutions and has put down strong foundations for the future. Goshawk Communications has made good progress, not least with our recently branded UK proposition 'Audacious'," said Chief Executive Gary Lamb.
Looking forward, the company said it remains positive and will continue to "explore potential growth opportunities" - with the aim of identifying new products.
