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£90m sale of KCOM national network to Cityfibre is 15TH Oakley deal of 2015
Transaction Type:
Dec 2015
Deal Value:

Oakley Capital Corporate Finance (‘Oakley’), the leadingTMT specialist corporate finance firm, has advisedKCOM Group PLC (“KCOM”; the “Company”) on the sale of its national network infrastructure (outside of Hull and East Yorkshire) to CityFibre Infrastructure Holdings plc (“CityFibre”) for a cash consideration of £90.0 million. The sale by KCOM, a leading provider of communications solutions to organisations across the UK and consumers in Hull and East Yorkshire, is subject to approval by CityFibre shareholders.

The Oakley team, led by Chris Godsmark, Partner and supported by Chris Brooks, Managing Director and Zishaan Arshad, Assistant Director, ran a sale process for the national network assets, which had a net book value of £41.8m at 30 September 2015. The national network infrastructure was built over ten years ago and was under-utilised by KCOM. The £90.0 million consideration represents significant value realisation for KCOM and will give the Company a strong financial platform on which to continue the transformation of the business. In parallel with the transaction, KCOM has entered into an arrangement with CityFibre for services to support existing commitments and customer arrangements.

Chris Godsmark commented:

“This is our 15th deal of 2015, our busiest year for deals to date. KCOM has been a longstanding equity capital markets client for Oakley and we have had a relationship with the Company going all the way back to its IPO in 1999. The sale of the national network assets is a key milestone in the transformation, led by Chief Executive Bill Halbert and we are delighted to have had the opportunity to advise KCOM along its journey.”

Since its establishment in late 2007, Oakley has announced over 65 transactions with a total enterprise value of more than £9 billion. Highlights from 2015 include advising Telecity on the £2.7bn public offer by Equinix, the sale of Verivox, the German price comparison business to Prosieben for €250m and the completion of the sale of Daisy Group to its management team for an enterprise value of £635m.

For more information, please contact:
Chris Godsmark – Partner
Zishaan Arshad – Assistant Director
Hannah Dodds
020 7766 6900

*Completed by Oakley Capital Corporate Finance

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