back to article It's a Hull of lot more: Macquarie offers £563m for fibre network flinger KCOM

Hull-based fibre flinger KCOM has thrown its lot behind a £563m bid from private equity investor Macquarie, dropping the previously accepted £504m offer from one of the UK's largest pension funds. KCOM sells broadband services to 140,000 consumer and business customers in the East Yorkshire region. Back in April, the …

  1. Jellied Eel Silver badge

    A curious case of Karoo and kangaroo?

    I liked this bit of the market release-

    The acquisition of KCOM represents an attractive opportunity for MIRA, via MEIF 6 Fibre, given KCOM's strong position in the market and community in which it operates.

    Which has always been the odd quirk with KCOM, ie it's monopoly for services in and around Hull, thanks to a bit of history and avoiding being swallowed by the Post Office, and then BT.. Which left the ability to sweat the assets for that bit of the UK, but then run smack into BT and the usual suspects when it tries to expand beyond it's franchise area. Which lead to some fun times when UK network designs ended up including connections into their turf. I've often wondered why it's been allowed to retain it's monopoly, and if that will continue. Macquarie state they plan to improve wholesale offerings, but that's always been the PITA when trying to integrate their bits.

  2. Anonymous Coward
    Anonymous Coward

    Oh dear, that's them ruined

    Another infrastructure company to be killed by Macquarie and probably forced to take a high interest loan in the process...

    1. Commswonk Silver badge

      Re: Oh dear, that's them ruined

      He who sups with the Devil should have a long spoon.

    2. Killing Time

      Re: Oh dear, that's them ruined

      The don't call Macquarie the Vampire Kangaroo for nothing....

    3. Nick Kew

      Re: Oh dear, that's them ruined

      Um, Macquarie is paying lots of money for the privilege (unlike Greybull paying £1 for British Steel - nodded through by then-business-secretary Sajid Javid). They'll need to make something of it to recoup that investment.

    4. ChrisElvidge

      Re: Oh dear, that's them ruined

      It's becoming very obvious that these high interest "loans" from parent compan(y|ies) should for all our sakes be banned by law. If a loan is necessary, interest should be charged only at market rate. LIBOR+.5? If a company is forced to take a loan, parent co. should not be allowed to asset-strip.

      1. Nick Kew

        Re: Oh dear, that's them ruined

        Wrong target. A loan might be exactly what a company needs, and the interest rate has to reflect risk.

        Why would KCOM take out a loan? Because it needs capital for something: for example infrastructure investment. And because there's a perverse incentive against the alternative of equity investment, in that a loan gets more favourable tax treatment (interest is paid out of untaxed income; dividends out of taxed income). If you dislike corporate loans, lobby for those to be aligned!

  3. paulf Silver badge
    Meh

    We'll file KCOM under TT (That's That)

    I wonder if Macquarie will shut the Eclipse residential business (outside the KCOM monopoly area)? It's been closed to new business for about 4-5 years now but the existing customers have been kept on. I've been with Eclipse (as have the parental units) for about 15 years and can now see the horror scenario of it being sold to ShitShit and having to bail in a serious hurry to another provider (Zen or A&A are top of the list based on the various comments on these fine forums)

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