Inmarsat gets $3.3 bn takeover offer from buy-out funds
26 March 2019
The board of Inmarsat Plc on Tuesday last confirmed the receipt of a takeover proposal from a transatlantic consortium of private investment funds, offering $3.3 billion in cash, to take the British satellite company private.
There was media speculation regarding a proposal from a consortium of investors that includes Apax Partners LLP, Canada Pension Plan Investment Board (CPPIB), Ontario Teachers’ Pension Plan Board (OTPP) and Warburg Pincus International LLC regarding a possible takeover of Inmarsat.
Inmarsat said that on 31 January it received a non-binding proposal from a consortium of investors that includes UK-based Apax Partners LLP, Canada Pension Plan Investment Board, Ontario Teachers’ Pension Plan Board and US-based Warburg Pincus International LLC regarding a possible cash offer of $7.21 per Inmarsat share for the entire issued, and to be issued, share capital of Inmarsat.
The $7.21 (543 pence) per share offer is at a premium of about 24 per cent to Inmarsat’s Tuesday close of 437.8 pence on the London Stock Exchange. The offer price represented a premium of about 47 per cent when the proposal was made on 31 January.
The proposal assumed no further dividends would be paid by Inmarsat following the date of the proposal, the release stated.
However, Inmarsat said the proposal is under discussion between the company and the consortium and as such, there can be no certainty as to the terms on which any offer would be made. Nor is it certain that the discussions will lead to any firm offer for the company.
Inmarsat said it would make a further announcement in due course depending on the progress of the talks.
In any case, the consortium is required by law to make a firm offer for Inmarsat within 28 days of the initial offer (ie, by 16 April) or announce its intention not to make a firm offer. Alternatively, it can extend to date of offer by mutual consent.
JP Morgan Cazenove, the UK arm of JPMorgan Securities plc which conducts its UK investment banking business and is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting as financial adviser exclusively for Inmarsat.
Credit Suisse International, which is authorised by the PRA and regulated by the FCA and the PRA in the United Kingdom, is acting as financial adviser exclusively for Inmarsat.
Inmarsat is a world leader in mobile satellite communications, and has been powering global connectivity for nearly four decades.
It provides governments, commercial enterprises and humanitarian organisations with mission-critical voice and high-speed data communications on land, at sea and in the air.