KCOM bidding war as second suitor enters the fray

KCOM board pulls support for initial bid as asset manager submits higher offer

A second suitor has entered the fold to acquire KCOM, with the tech firm withdrawing support for the bid it received in April.

Pension fund USSL had made a bid valuing KCOM at £504m, which KCOM's board was supporting.

However, a new bid from Macquarie Infrastructure and Real Assets (MIRA) has now been received, via Its MEIF 6 Fibre subsidiary, with KCOM now recommending that this bid is accepted by shareholders.

Patrick De Smedt, interim non-executive chairman of KCOM, said: "The board of KCOM is pleased to recommend MEIF 6 Fibre's cash offer for KCOM which represents an increase of 11 pence to the USS offer of 97 pence per KCOM share and a 49 per cent premium to the undisturbed share price on 23 April 2019.

"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."

MIRA manages over €110bn in assets, including 200 businesses, 400 properties and four million hectares of farmland.

Leigh Harrison, head of MIRA EMEA, said: "We are pleased that the KCOM board is recommending our takeover offer.

"KCOM has a strong local heritage that has been developed over more than a century and is well positioned to continue to meet the evolving telecommunications needs of the region, which is why we have made this compelling offer to shareholders at an attractive premium.

"We look forward to partnering with management to increase broadband uptake in its core region and beyond, enhancing the quality of service delivery while giving local businesses and residents greater access to the opportunities that high-speed broadband can provide."