UK's Gamma Communications in preliminary talks with Oakley Capital, Giacom on possible takeover
Overview of Gamma Communications' Potential Takeover Discussions
Background and Current Developments
May 15 (Reuters) - British telecoms firm Gamma Communications confirmed on Friday that it is in preliminary talks with private equity firm Epiris, and separately, a consortium led by Oakley Capital and IT service provider Giacom on a potential takeover.
Shares of the company closed up 8.8% at 10.18 pounds, valuing the company at nearly 921.8 million pounds ($1.23 billion).
Exploration of Sale and Interested Parties
Gamma said in April that it was exploring a sale and was in discussions regarding possible proposals. It confirmed on Wednesday that Providence Equity Partners was among the parties with which it is in discussions.
Timeline and Takeover Rules
Under UK takeover rules, Epiris and the consortium have until June 12 to make a firm offer or walk away.
Responses from Involved Parties
Epiris declined to comment. Oakley Capital and Giacom did not respond to requests for comment.
Details on Oakley Capital and Giacom's Involvement
Sky News, which first reported the talks with Oakley, said that Oakley Capital is partnering with IT service provider Giacom for a potential 1 billion pound takeover and break-up of Gamma.
Previous Collaborations
Oakley and Giacom's Track Record
Oakley has previously worked with Giacom founder and telecom veteran Matthew Riley at Damovo and Daisy Group, which merged with Virgin Media O2 last year in a $1.85 billion deal.
Additional Information
($1 = 0.7507 pounds)
(Reporting by Unnamalai L and Aditi Tiwari in Bengaluru; Editing by Vijay Kishore, Kirsten Donovan )
