Gamma Communications Shares Surged on £1bn Takeover Talks with Waterland

Gamma Communications shares surged 11.6% on Friday to close at 1,082p, valuing the AIM-listed telecoms group at over £1bn, after it confirmed it is in preliminary takeover talks with private equity firm Waterland.

The stock, which had closed the previous session at 969.5p, jumped as high as 1,084p intraday, with trading volumes spiking to nearly 1.3 million shares — roughly ten times the recent daily average — as investors reacted to the deal speculation.

In a regulatory statement issued under Rule 2.4 of the Takeover Code, Gamma’s board confirmed that Waterland Private Equity Investments B.V., the Netherlands-based buyout firm, is “amongst the parties in discussions” regarding a possible offer for the company’s entire issued share capital. The announcement also revealed that Giacom Group is acting “in concert” with Waterland, with Giacom lined up to acquire certain business divisions of Gamma as part of a carve-up structure, according to reporting by Sky News, which first flagged the £1bn approach.

The company cautioned that discussions remain at a preliminary stage, with talks involving other potential bidders also ongoing. Under Takeover Panel rules, Waterland now has until 5pm on 18 September 2026 to either announce a firm intention to make an offer or confirm it will not proceed.

Gamma provides cloud communications, connectivity and IT services to businesses across the UK, Germany, Spain and the Benelux region, and has long been seen as a potential consolidation target given its steady cash generation and market position. No indicative price or offer terms have been disclosed, and there is no certainty that a formal bid will materialise.