MEIF 6 Fibre (a Macquarie fund) is to buy KCOM Group in a deal that values the company at £627 million ($787.5 million) or just over 120p per share.

The deal is a significant improvement on that offered by the Humber Bidco unit of British pension fund Universities Superannuation Scheme Ltd (USSL). However, it was a disappointing result for long-standing shareholders who bought shares when KCOM initially floated in 1999 at 225p.

KCOM is attractive to investors as it provides a fully fibre network in the only area of the UK not served by BT. In May 2019 it completed its £85 million ‘Lightstream’ rollout which delivers a 1Gbit/s FTTP solution to 200,000 premises (96% of the addressable area). The remaining 4% of customers will have 75Mbit/s FTTC.

Macquarie Infrastructure and Real Assets (MIRA) manages fibre and cable broadband networks, broadband infrastructure, secure mobile networks, pay-tv and mobile towers. It supplies infrastructure used by the UK’s major broadcasters and mobile network providers, and has also invested in Arqiva, Poland-based INEA and Denmark’s TDC.

Posted by Teresa Cottam

Teresa is the Chief Analyst at Omnisperience and has over 25 years' experience in the telecoms and technology markets. She is an expert on SME and enterprise telecoms, and has considerable vertical market expertise. Her research focus lies in helping B2B telecoms firms become more commercially successful by better understanding and meeting their customers' needs. She is a judge of the GSMA Global Mobile Awards (GloMo's) for customer experience and enterprise innovation, and for the UK Cloud awards. You can follow her on Twitter @teresacottam

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