Macquarie explores KCOM sale
April 22, 2024
Macquarie, the Australian investment fund and former owner of Thames Water, is reportedly looking to sell KCOM, the Hull-based broadband provider amid growing competition from upstart networks.
The Telegraph reported that Macquarie has already appointed advisory-focused investment bank PJT Partners to conduct a strategic review of KCOM’s business. The move could potentially result in a sale or merger of the business with a rival operator.
Hull is in the only UK city not currently served by BT’s Openreach network after KCOM refused to merge with other regional providers during the formation of the former telecoms monopoly. The company has recently opened up its network to more third-party internet service providers.
Macquarie, which also holds a 25 per cent stake in Arqiva, the UK-based, telecommunications infrastructure provider, acquired KCOM in 2019 for £627 million (€725.7m). The sale price would now likely be significantly lower as the market continues to consolidate.
PJT Partners’ strategic review is expected to take several months. Virgin Media O2 and Cityfibre are among potential suitors should the company be put up for sale, suggests The Telegraph.