Key Takeaways
- • Waterland ends acting-in-concert agreement with Giacom regarding Gamma Communications but explicitly reserves the right to pursue an independent bid for the company.
- • Gamma accepted Epiris' takeover proposal of 1,120 pence per share (approximately £1.08bn/$1.46bn) earlier in September, but share price movement suggests market expectations of a competing offer.
- • Waterland reportedly considering a counter-offer potentially exceeding Epiris' agreed bid, which would restart a competitive takeover process after what appeared to be a concluded sale.
- • Gamma shares traded at 1,141 pence on 11 September, approximately 2% above Epiris' offer price, indicating investor belief in higher bid probability and valuation upside.
- • Multiple buyout firms have cycled through Gamma's extended sale process, with Oakley Capital and Providence Equity Partners withdrawing in June before Waterland and Giacom emerged as August bidders.
Summary
Dutch private equity firm Waterland has terminated its acting-in-concert arrangement with UK telecoms provider Giacom concerning Gamma Communications, though it has signaled continued interest in independently pursuing a takeover of the company. According to Reuters, Waterland stated it would continue assessing its interest in Gamma while cautioning that no certainty exists around proceeding with a formal offer.
The development materializes against the backdrop of Gamma's acceptance of Epiris' takeover proposal announced earlier in September, valued at 1,120 pence per share and implying an enterprise value of approximately £1.08bn ($1.46bn). Waterland's dissolution of its partnership with Giacom—under which Giacom was evaluating the acquisition of specific Gamma business units as part of a broader transaction—leaves open the possibility of a competing bid that could restart the sale process.
Waterland and Giacom's August emergence as alternative bidders represented a new chapter in Gamma's prolonged sale process, which had previously attracted interest from Oakley Capital and Providence Equity Partners before both withdrew their approaches in June. Reports suggest Waterland may be preparing an offer materially exceeding Epiris' accepted bid, a prospect that would reopen a takeover contest seemingly concluded by Gamma's acceptance of the Epiris proposal.
Market pricing reflects ongoing uncertainty around a definitive outcome. Gamma shares traded at 1,141 pence on 11 September, representing approximately 2% upside to Epiris' offer price. This valuation gap signals investor expectations that a superior competing proposal could still materialize, potentially triggering a revised auction process or inducing Epiris to increase its offer.
The situation underscores the competitive dynamics in mid-market UK telecommunications M&A and highlights how buyer walkdowns and reconfigured bidding consortiums can extend sale timelines even after apparent deal consensus.
The development materializes against the backdrop of Gamma's acceptance of Epiris' takeover proposal announced earlier in September, valued at 1,120 pence per share and implying an enterprise value of approximately £1.08bn ($1.46bn). Waterland's dissolution of its partnership with Giacom—under which Giacom was evaluating the acquisition of specific Gamma business units as part of a broader transaction—leaves open the possibility of a competing bid that could restart the sale process.
Waterland and Giacom's August emergence as alternative bidders represented a new chapter in Gamma's prolonged sale process, which had previously attracted interest from Oakley Capital and Providence Equity Partners before both withdrew their approaches in June. Reports suggest Waterland may be preparing an offer materially exceeding Epiris' accepted bid, a prospect that would reopen a takeover contest seemingly concluded by Gamma's acceptance of the Epiris proposal.
Market pricing reflects ongoing uncertainty around a definitive outcome. Gamma shares traded at 1,141 pence on 11 September, representing approximately 2% upside to Epiris' offer price. This valuation gap signals investor expectations that a superior competing proposal could still materialize, potentially triggering a revised auction process or inducing Epiris to increase its offer.
The situation underscores the competitive dynamics in mid-market UK telecommunications M&A and highlights how buyer walkdowns and reconfigured bidding consortiums can extend sale timelines even after apparent deal consensus.
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