Manx Telecom has recommended shareholders accept a takeover offer from Basalt Investment partners following a year in which revenues rose by three percent.
The Isle of Man-based telco, which operates landline, broadband and mobile services, said “robust” performance across its core divisions and its Vannin Ventures international growth unit, led to the increase from £78.5 million to £81.5 million.
Meanwhile, operating profits rose by 0.6 per cent to £17.5 million.
“2018 was another year of robust performance for Manx Telecom,” said Garry Lamb, Manx Telecom CEO. “Thanks to the hard work of our people, our on-island telecoms business has remained stable – with a solid performance in Fixed Line, Broadband and Data Services, and growth in Mobile – while our international growth business, Vannin Ventures, has seen growth in Global Solutions.
“We remain positive in the outlook for the Group due to the solid underlying revenue, EBITDA and cash flow performance during the year, and are continuing to explore potential growth opportunities with the aim of identifying new products and services for a global audience.”
Manx Telecom started life out as a BT-subsidiary in 1985 before being spun off as part of O2 in 2001. During that period, the Isle of Man was used as a testbed for new network services and products, such as 3G.
Telefonica acquired the entire of O2 in 2005 and sold Manx Telecom to private equity firms in 2010 before the company floated on the stock exchange in 2014. Its strong performance has attracted interest from investors once again.
Basalt has bid £225 million in cash for Manx Telecom, an offer that works out at 215p per share – an offer that has been “unanimously” accepted.
“Since its IPO in 2014, Manx has performed well and delivered consistent returns for its shareholders through resilient earnings, strong cash generation and a growing dividend,” said Kevin Walsh, Chairman of Manx Telecom.
“Basalt’s cash offer recognises the quality of the business, the management team and the employees and provides certainty to shareholders. After careful consideration and negotiation the Board concluded that it would unanimously recommend the offer as being in the best interests of shareholders, employees and other stakeholders.”