British pension fund Universities Superannuation Scheme Ltd (USSL) said its Humber Bidco unit would buy telecommunication company KCOM for 504 million pounds ($651.42 million), sending KCOM shares soaring more than 30 percent.

Humber Bidco would pay 97 pence per KCOM share in cash, a premium of almost 34 percent.

KCOM’s directors intend to urge shareholders to vote in favour of the deal which they called “fair and reasonable”, USSL said.

KCOM shares surged nearly 34 percent – its biggest one-day gain in nearly two decades. They ended the day at 96.9 pence, nearly matching USSL’s offer.

The deal comes after KCOM issued a profit warning late last year that was followed by a string of management changes, including replacement of its chief executive and finance chief.

Europe-focused activist Teleios Capital, KCOM’s largest stakeholder with a 16.1 percent holding, welcomed the offer. It said it was in discussions with the management over the last two years around strategic alternatives, including a sale.

“We believe this offer represents a positive outcome for the company and all other investors,” Teleios said.

A source familiar with the matter told Reuters that Teleios facilitated KCOM to name Graham Sutherland, a former BT executive, as its new boss.

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