Australian investment bank Macquarie has appointed advisers at PJT Partners to run a strategic review of KCOM.
The Hull-based telecoms company is the sole broadband provider in the area and is unique in being the only city in the UK not served by BT’s Openreach, a throwback to the establishment of the former state monopoly, where Hull’s municipal authority refused to merge with the other regional companies.
Founded in 1904, the then Kingston Communications has long held a monopoly in the area with its distinctive cream, rather than red phone boxes, and was a pioneer in interactive TV in the UK.
Macquarie, which also holds 25% in transmission company Arqiva, purchased KCOM in 2019 for £627 million. Analysts believe the purchase price could be significantly lower as the market begins to consolidate.
In recent years its dominance has been challenged by the likes of Cityfibre, Connexin, Grain and MS3 Networks. KCOM has also begun to open up its network to third-parties.
Cityfibre and Virgin Media are both seen as potential bidders.
