Adds details from statement, background
Oct 8 (Reuters) – TalkTalk TALK.L said on Thursday it has received a preliminary offer from its third-largest investor, Toscafund Asset Management, to take the British broadband operator private for 97 pence per share, a 16.4% premium to its last closing price.
The company said while the board has decided to discuss the proposal with its advisers, Toscafund has to get the support of the second-biggest shareholder and TalkTalk Chairman Charles Dunstone to make any firm bid.
Dunstone owns a 29.86% stake in TalkTalk, while Toscafund holds 29.09%, according to Refinitiv Eikon data. The proposal values TalkTalk at 1.12 billion pounds ($1.45 billion), according to Reuters calculations.
Shares of TalkTalk jumped 17% to the top of London’s midcap index .FTMC in early deals to trade closer to the offer price, indicating the market’s approval.
Sky News had reported in July the British company had rejected a 135 pence per share offer from Toscafund last year.
Barclays Bank and Deutsche Bank are TalkTalk’s advisers.
($1 = 0.7721 pounds)
(Reporting by Pushkala Aripaka in Bengaluru; Editing by Arun Koyyur)
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