UK telecoms provider TalkTalk has received a preliminary and non-binding proposal from funds advised by Toscafund Asset Management (TAM) regarding a possible cash offer for the company at GBP 0.97 per share. This comes after reports in the summer that TalkTalk previously rejected a takeover offer worth GBP 1.35 per share from Toscafund in 2019.
The new offer is a premium of around 16 percent on TalkTalk's last closing share price, the day before the announcement. TalkTalk's shares are down from a peak of over GBP 1.20 earlier this year, with a sharp fall at the end of March after it sold its fibre network. The latest bid values the company's total shares at around GBP 1.1 billion.
The board has considered the terms of the proposal, which involves a newly-formed company taking over the entire issued and to be issued ordinary share capital of TalkTalk, and has decided to progress further, the company said in a statement. The proposal contains several pre-conditions for making a formal offer, including securing an irrevocable commitment from controlling shareholder Charles Dunstone to support an offer.
Under stock market rules, TAM has until 17.00 hours on 05 November to announce a firm intention to make an offer for TalkTalk or announce that it does not intend to make such an offer.
