UK-based pension fund Universities Superannuation Scheme Limited (USSL) has announced that its ‘wholly-owned indirect subsidiary’ Bidco is offering to acquire all shares in Hull-based KCOM for a total consideration of GBP504 million (USD652 million). In a press release regarding the planned transaction it was revealed that Bidco has offered to pay GBP0.97 per share in cash for KCOM stock, with the latter’s directors having recommended that shareholder vote in favour of a deal which they believe to be ‘fair and reasonable’.
Commenting on the matter, Patrick De Smedt, Interim Non-executive Chairman of KCOM, said: ‘The Board believes that USSL’s offer for KCOM provides, on completion, both meaningful, guaranteed cash returns for shareholders as well as a strong, supportive partner in our endeavours to take the business forward to new successes.’ Meanwhile, Mike Powell, Head of the Private Markets Group at USS Investment Management Limited, USSL’s investment manager, added: ‘We believe that KCOM is a high-quality business that is well-placed to grow and thrive under private ownership and that is why we have made this compelling offer to shareholders at an attractive premium.’