LIVE M&A SITUATION LONDON STOCK EXCHANGE: GAMA.L TARGET: GAMMA COMMUNICATIONS PLC

Gamma Communications M&A Takeover Premium & Buyout Valuation Model

Independent valuation, debt capacity, and sponsor return workbench assessing the reported revised takeover offer from a Dutch private equity consortium (Sunday Times / Reuters).

Reported Catalyst: Sunday Times confirms Dutch PE sweetening initial indicative approach

Deal Parameters

M&A Offer Presets
£19.50
£14.00 (Undisturbed) £24.00 (Aggressive)
4.5x
2.5x (Conservative) 6.0x (Aggressive PE)
20.0%
15.0% Min PE Hurdle 25.0% Top Quartile
£124.5M
£80.0M £160.0M (Interim FY25)
£122.0M
£105.0M £140.0M Consensus

Key Valuation & Buyout Telemetry

OFFER PREMIUM TO UNDISTURBED
37.32%
vs £14.20 undisturbed closing
IMPLIED EQUITY VALUE
£1907.1M
97.8M diluted ordinary shares
IMPLIED ENTERPRISE VALUE
£1782.6M
Adjusted for £124.5M net cash
IMPLIED EV / EBITDA
14.61x
on £122.0M run-rate EBITDA
SENIOR DEBT FINANCING
£549.0M
Funded at 4.5x target leverage
SPONSOR EQUITY CHECK
£1358.1M
71.2% equity contribution
REQ. 5-YR EXIT EQUITY
£3379.4M
Target 20.0% sponsor net IRR

Sources & Uses / Enterprise Value Bridge (£M)

Exit Value & MOIC Sensitivity Matrix (5-Year Hold at Selected IRR)

Offer Price (£/sh) Equity Value (£M) EV (£M) EV/EBITDA Sponsor Eq. Check 15% IRR Exit 20% IRR Exit 25% IRR Exit

Precedent UK Enterprise Cloud Telecom Take-Privates & Comparators

Target / Deal Acquirer / Sponsor EV (£M) EV/EBITDA Offer Premium Structure / Rationale
Gamma Communications (Current Model) Dutch PE Consortium £1,782.6M 14.61x +37.32% Sunday Times reported sweetened cash offer
KCOM Group plc Macquarie European Infrastructure £627M 11.8x +49.0% Competitive bidding war vs USS pension fund
TalkTalk Telecom Group Toscafund Asset Management £1,812M 7.2x +16.4% Heavily levered broadband carveout
Inmarsat plc Apax, Warburg Pincus, CPPIB £4,600M 10.5x +45.0% Satellite telecom take-private consortium
Euromoney Institutional Astorg & Epiris £1,660M 16.5x +34.0% Fast-growing subscription B2B recurring SaaS
INVESTMENT COMMITTEE TRANSACTION MEMORANDUM CONFIDENTIAL DEAL ROOM
Loading scenario analysis...