Waterland plans higher Gamma bid in UK telecom buyout contest
A takeover contest is intensifying around Gamma Communications after the British telecoms company agreed last week to a £1.08 billion offer from Epiris. A rival approach from Dutch private equity firm Waterland would top that 1,120 pence-a-share bid and could reshape the ownership of parts of Gamma's business.
Highlights
- Waterland is preparing a higher bid for Gamma, challenging the 1,120 pence per share offer from Epiris valuing Gamma at £1.08 billion.
- Gamma favors Epiris' offer for its lower execution risk compared to Waterland's, despite the likelihood of Waterland proposing a higher price.
- Waterland intends to sell two Gamma divisions serving SMEs—which generated nearly 30% of revenue—to Giacom post-acquisition, signaling a breakup strategy.
Competing offers emerge for Gamma
As reported by Reuters, citing the Sunday Times, Waterland plans to make an offer for Gamma that exceeds the bid already agreed with Epiris. Gamma last week accepted a 1,120 pence per share offer from the British private equity firm, valuing the company at about £1.08 billion, or $1.38 billion.Waterland was in August in early talks over a potential takeover of Gamma. The Dutch buyout firm is now preparing a higher proposal, adding competitive pressure to a deal process that has already produced a recommended offer.
Gamma views the Epiris proposal as more straightforward and carrying lower execution risk than the structure envisaged by Waterland, the report said. Waterland, Gamma and Epiris do not immediately respond to requests for comment outside regular business hours.
Deal structure raises execution questions
Under the plan described by the Sunday Times, Waterland would sell two Gamma divisions to UK telecom service company Giacom after completing a takeover. Those businesses serve small and medium-sized enterprises and accounted for nearly 30% of Gamma's revenue last year.The proposed disposal suggests Waterland sees value in breaking up parts of Gamma's operations after an acquisition rather than keeping the group intact. For the UK telecoms sector, that points to continued private equity interest in business communications assets, while also highlighting that transaction certainty can be as important as price in determining which bidder prevails.
Spire Healthcare’s £1.03 billion takeover agreement highlighted how private equity buyers are pursuing UK assets while boards weigh price against certainty. Our earlier article noted that a Toscafund-led consortium agreed a 250p-per-share offer after Spire’s strategic review, with majority shareholder support already lined up. It also underscored how rising cost pressures in the sector can shape deal timing and the appeal of a clean, executable transaction.
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