Shares of Salford-based broadband giant TalkTalk Telecom Group rose about 3% on Thursday after it extended the deadline for its major shareholder Toscafund Asset Management to make a firm offer for the company until December 3.

The original 97p per share proposal would take TalkTalk private in a deal that values it at around £1.12 billion.

TalkTalk said “commercial discussions and due diligence” are progressing with Toscafund.

In a stock exchange statement, TalkTalk said: “On 8 October 2020, the company announced that it had received a preliminary and non-binding proposal from Toscafund Asset Management LLP on behalf of funds advised by it regarding a possible cash offer to be made by a newly formed company for the entire issued and to be issued ordinary share capital of the company at a price of 97 pence per share, together with a full unlisted share alternative …

“In accordance with Rule 2.6(a) of the Code, TAM is required, by not later than 5.00 p.m. on 5 November 2020, to either announce a firm intention to make an offer for the company in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.

“Commercial discussions and due diligence are progressing with TAM.  

“As a consequence, and in accordance with Rule 2.6(c) of the Code, the board of directors of TalkTalk has requested that the Panel on Takeovers and Mergers extends the deadline referred to above. 

“Accordingly, an extension has been granted by the Panel and TAM must, by no later than 5.00 p.m. on 3 December 2020, either announce a firm intention to make an offer in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies.  

“This deadline will only be extended further with the consent of the Panel, in accordance with Rule 2.6(c) of the Code.

“There can be no certainty that a firm offer will be made for the company by TAM even if the pre-condition stated in the 2.4 Announcement is satisfied or waived.”