KKR moves in on Vocus

US private equity giant Kohlberg Kravis Roberts has moved a step closer to a takeover of Vocus Group with the telco’s board opening its books to a non- exclusive due diligence.

KKR had announced a conditional $ 3.50 a share takeover proposal for Vocus on June 7, valuing the telecom operator at $ A3.3 billion, a far cry from the almost $ 9 a share Vocus was commanding in August last year.

Yesterday Vocus shares were ahead by 3 per cent, at $ 3.41.

Vocus said its board had carefully reviewed KKR’s proposal and decided to allow due diligence to establish whether an acceptable transaction could be agreed.

Vocus said it would update shareholders in due course.