KCOM’s £627m takeover by Australian firm Macquarie has been completed, with early details for the future of the broadband provider revealed.
The deal, which was sanctioned by the High Court in London earlier this week , is the culmination of a takeover saga which started three months ago in April.
After Macquarie fended off competition from rival bidder USS (Universities Superannuation Scheme) in a week-long auction in July, shareholders at KCOM backed the £627m offer – worth 120.3p per share.
Now the deal has been completed, details have surfaced of Macquarie’s plans for KCOM.
It includes expanding KCOM’s network beyond East Yorkshire, and opening its current network up to other firms to “improve customer choice and retail competition.”
The deal sheet for KCOM , first submitted in June, said: “In the long term, MIRA (Macquarie) aims to increase third party access to KCOM’s network infrastructure to improve customer offerings, customer choice and retail competition.
“MIRA believes an expansion of KCOM’s existing footprint will increase fibre accessibility, reduce digital exclusion and deliver the infrastructure needed for the economy to prosper in the region.
“Infrastructure funds managed by MIRA have invested into the region since 2017, in particular in renewable energy via Race Bank Offshore Wind Farm off the coast of Grimsby and the Humber port sector via HES Humber Bulk Terminal.
“MIRA therefore believes the acquisition of KCOM will be complementary to its existing investments as these organisations all provide infrastructure and employment opportunities that contribute to the ever-growing Northern Powerhouse.”
Macquarie also previously outlined its intention to keep KCOM’s headquarters rooted in Hull.
Directors at KCOM welcomed the announcement, and wrote: “It is positively noted by the KCOM Directors that MEIF 6 Fibre has stated that it intends to maintain KCOM’s corporate headquarters and headquarters’ functions in Hull.
“This is positive as it recognises the strong local heritage KCOM has in the area.”
KCOM’s shares have now been suspended, and it is expected the broadband provider will be removed from the London Stock Exchange.
The Hull-rooted firm first floated on the stock market back in 1999, when thousands of people bought shares in KCOM.
Hull Live understands shareholders will be paid out in the coming weeks.
It was those shareholders who voted last Friday (July 26) in support of the Macquarie deal.
A total of 5,130 shareholders at KCOM took part in the vote. Of those, 4,242 voted in support of Macquarie’s £627m takeover offer, with just 888 (17.3 per cent) voting against it.
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