Gamma shares fall as US firm Providence withdraws from bidding pool
Gamma Communications PLC on Wednesday saw its shares fall after another bidder pulled out of acquisition plans.
Gamma is a Newbury, Berkshire-based provider of cloud communications and voice services.
Earlier this month, it reported a possible offer from a consortium made up of Rhode Island, US-based private equity firm Providence Equity Partners LLP and London-based peer Epiris LLP.
On Wednesday, Providence disclosed that it was no longer part of the consortium bidding for Gamma, and did not intend to make an offer.
This follows a Sky News report last month that Providence was in exclusive talks to acquire a stake in Gamma’s Basingstoke, Hampshire-based rival, Southern Communications Group, after ICG PLC ended discussions about a deal.
Epiris said ‘it is continuing to consider its options’ in relation to a potential offer, but noted there is no certainty an offer will be made. Under UK takeover rules, it has until July 8 to confirm whether or not it intends to proceed with an offer.
On June 12, London-based PE firm Oakley Capital backed down from making an offer for Gamma.
Gamma shares fell 7.6% to 813.50 pence each on Wednesday morning in London, giving it a market capitalisation of £721.2 million. The stock is down 29% over the past year.
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