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KCOM provides voice and data telecommunication services to the city of Hull and across East Yorkshire
East Yorkshire based telecommunications provider, KCOM, has backed a new takeover bid from the Macquarie Infrastructure and Real Assets (MIRA) fund, which values the company at £563 million.
KCOM was considering a previous bid of £504m from the Universities Superannuation Scheme but has now pulled out of negotiations with the USS in favour of the MIRA bid.
The new deal would see MIRA pay 108p per share to acquire KCOM.
"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," said Patrick De Smedt, interim non-executive chairman of KCOM.
KCOM provides fixed line telephone and broadband services to 140,000 people in Hull and throughout East Yorkshire.
Shares in KCOM rose by 13 per cent on news of the new bid, wit shares trading at a high of 110.4p today.
"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," Leigh Harrison, head of Macquarie Infrastructure and Real Assets EMEA, told journalists from the Yorkshire Post.
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