TalkTalk confirms £1.1bn takeover offer
TalkTalk has released a statement this morning about a possible £1.1bn takeover by investment firm, Toscafund.
The Salford Quays-based firm confirmed that it had received a “preliminary and non-binding proposal” from Toscafund Asset Management, which would be made by a “newly formed company.”
The offer is worth 97p per share, which is less than the reported 135p it originally offered back in July. That would have valued the home phone and broadband provider at £1.55bn.
TalkTalk’s statement continued:
“The Board has considered the terms of the Proposal and has agreed to progress the Proposal further with TAM along with taking advice from the Company’s advisers.
“The Proposal contains a number of pre-conditions to announcing any firm intention to make an Offer, including, that TAM receives an irrevocable undertaking from Sir Charles Dunstone in support of such Offer including an election for any unlisted share alternative in respect of his entire holding of ordinary shares in the Company. These pre-conditions may be waived by TAM in its absolute discretion.
“A further announcement will be made as and when appropriate.”
Due to Stock market rules, TAM is required to either announce a firm intention to make an offer, or state it won’t make an offer by 5pm on November 5th.
Toscafund Asset Management LLP was founded in 2000 by Martin Hughes and has approximately $4bn of assets under management.