business
Canadian Firm Eyes KCom Broadband Network in Macquarie Sale Process
Northleaf Capital Partners has expressed interest in acquiring KCom, the Hull-area broadband provider owned by Macquarie. The Australian bank faces pressure from lenders to sell the business amid rising competition and widening losses.
May 24, 11:03 AM·1m read1 source
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A Canadian private equity firm is examining a potential purchase of KCom, the incumbent broadband provider for the Hull area, after Macquarie hired advisers to restart a sale process. Northleaf Capital Partners, based in Toronto, is understood to have indicated interest following Macquarie's appointment of Perella Weinberg Partners to manage the transaction.
Northleaf already owns Quickline, a rival network serving about 300,000 households in rural Yorkshire and Lincolnshire.
Macquarie acquired KCom in 2019 for £627 million and now faces pressure from lenders including NatWest and Lloyds to complete a sale by the end of June. Bank borrowing stood at £425 million at the end of March 2024. 4 million the prior year. 6 million.
Alternative network providers have entered the Hull market since the pandemic, reducing KCom's dominance. Any buyer would also face the cost of converting the remaining 40 percent of customers from copper to fibre connections. KCom serves more than 300,000 premises and about 150,000 customers.
The company traces its origins to 1904 and remains the only UK area not covered by BT's Openreach network. Northleaf Capital and Macquarie declined to comment.
