Giacom chief Riley targets Gamma for £1bn acquisition – Sky News

Giacom chairman Matthew Riley is at the centre of a potential £1bn takeover and breakup of Gamma Communications, according to a report by Sky News.  

Riley is reported to be working with private equity firm Oakley Capital on a possible bid for Gamma.

Banking sources cited by Sky News said one structure under discussion would see Oakley Capital launch a full takeover of Gamma before selling its UK telecoms reselling division to Giacom. The move would effectively carve up the business, with Riley targeting the core channel-facing assets.

Sky News said Gamma confirmed last month that it had received takeover interest and was in discussions with multiple parties. Private equity firm Providence Equity Partners has also emerged as a potential bidder.

Riley and Oakley previously collaborated at Daisy Group and Damovo, building Daisy into one of the UK’s largest privately owned telecoms services businesses.

Industry analysts told Sky News that Riley could prove a “kingmaker” in any deal, given the scale of his existing UK channel operations. The division of Gamma believed to be of interest to Giacom is thought to generate more than half of the company’s earnings.

Acquiring Gamma’s reseller arm would significantly boost Giacom’s position as a dominant channel aggregato. A breakup model also raises questions about whether rival bidders such as Providence would push for a more integrated approach. The outcome is likely to hinge on the willingness of shareholders to back a carve-up versus a full strategic buyout.

Shares in Gamma were trading at around 911p on Friday afternoon, giving the company a market capitalisation of roughly £850m.

Giacom, Inflexion, Oakley Capital and Gamma Communications have all been approached for comment, Sky News reported.