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Fair enough and thanks for contacting the company.
I email Mr Pearce today and got a response
Mr Pearce as a shareholder I would like to know why the board is recommending this low offer for the company when on the 6th July 2018 the board stated
"The Board remains highly confident in the independent strategy and prospects of Inmarsat, given our track record, unique capabilities, differentiated market position and strong channels to market"
What has changed?
Mr M
Thank you for your question. As is made clear in the announcement today, the Board looked at all the current circumstances in determining that it was the right thing to give shareholders the option to cash out at the premium offered by the PE consortium. This is not about a lack of confidence in the business – far from it – but a recognition that shareholders deserve sight of a major liquidity event. It’s always a difficult decision for the Board to form a judgment on this kind of situation, but the fact that our largest shareholder (someone who has held their shares almost since IPO and really understands the business) has decided to vote in favour of the offer speaks volumes about the value of this offer to some of our shareholders and their desire to see something like this happen. But I stress that if this offer does not close for any reason, we continue to remain very confident in the long term prospects for Inmarsat as an independent listed company.
Best wishes
Rupert Pearce
Think yourself lucky, I bought at over £11 ! I did a substantial top up at £5 so I can console myself that I made a decent profit on that tranche.
It's a done deal unless another offer comes in. I don't think the board will have recommended it unless they already had the votes they needed to guarantee acceptance at the AGM.
INMARSAT TO BE BOUGHT BY PRIVATE EQUITY GROUPS IN $3.4BN PACT
9 hours ago
Hargreaves Lansdown is not responsible for this article's content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest. Article originally published by The Financial Times.
A consortium led by private equity groups Apax and Warburg Pincus is set to acquire satellite communications company Inmarsat in a deal that values the UK group at $3.4bn, the companies said on Monday.
Alongside Canada’s CPPIB and Ontario Teachers’ Pension Plan Board, the groups will pay $7.21 in cash per Inmarsat share and will take the entire group private.
The offer represents a 27 per cent premium to the closing price of £4.31 per Inmarsat share on March 18, the announcement said.
The deal is expected to be completed by the end of the year, pending regulatory approvals.
The group of investors said: “The satellite sector is attractive, with unique characteristics, including long lead times and the need for deep technical expertise, while operators in the sector require strategic management and a long investment horizon”.
The group also said Inmarsat was well placed “for growth based on its unique global infrastructure, leading technological and capacity road map and strong spectrum holdings”.
But the transaction comes after the satellite business, which will continue to be based in the UK, had struggled to attract investors because of recent poor performance. EchoStar, for instance, ditched a takeover attempt last year.
Inmarsat Plc
Sell: 551.40 | Buy: 552.00 48.80 (9.64%)
Prices delayed by at least 15 minutes.
It emerged last week that the London-listed company had received a non-binding offer from the consortium. Previous interest from EchoStar and Eutelsat has raised hopes of a counterbid for the British company. However the large cash element of the the offer has cooled expectations that a rival offer will be placed.
J.P. Morgan Cazenove, PJT Partners and Credit Suisse advised Inmarsat on the potential transaction.
It's very early days! Who knows the outcome?
Yeah this stinks. The only difference basically is that the board get to keep their jobs. Suddenly the offer values the company fairly?!?
The SP has traded at the offer price all day moving with the exchange rate. Albeit + 3p to 4p. Doesn't feel like anyone else is lining up a counter offer.
I hope so.
rupert_pearce@inmarsat.com
This may be a strategic move...by recommending acceptance them it puts a bit of pressure on alternative bidders to get an offer in.
Not impressed that I have bought into this great company over the years and they are now giving it away
The more I think about it, the more this deal stinks.The board valued the company at around 7.50 per share last summer when it rejected the previous bid. Why has the board changed its position big time? That's a huge difference in valuation.
And indeed....
Apols re formatting !
Norges has just (1002) released an updated holding RNS, extract :
(f) In addition to the company in 1(c) above, is No
the discloser making disclosures in respect of any Not Required
other party to the offer?
If it is a cash offer or possible cash offer,
state "N/A"
this compares with the earlier version (0851), which mentioned EchoStar
f) In addition to the company in 1(c) above, is the discloser making disclosures in respect of any other party to the offer?
If it is a cash offer or possible cash offer, state "N/A"
Yes
EchoStar Corp
Oops !
"Don't ascribe to malevolence/conspiracy that which can be adequately explained by human error/incompetence"
ATB
More than 9m shares trades today, and the resistance is at 5.50, unsurprisingly. We'll know something is definitely afoot if the price climbs higher.
Hi all,
Let's hope so !
Or maybe it's just that Norges hasn't updated its holdings form since the EchoStar approach last year.....;-<
ATB
I'd say there must be a good chance that someone else will fancy this company at that price, and BumblingFool's message below hasn't done anything to dampen my enthusiasm.
A second bidder perhaps, Jimmyvill?
This could be about to get interesting !
Form 8.3 Norges buy further 171446 shares with Echostar as part of disclosure. Maybe Echostar are planning a move
Having bought in at around £7.50 you can imagine how I feel about this. I certainly wouldn't vote to accept this offer. I might not get my purchase price but I would like it to get much closer to the mark. I hope the valuation proves to be much higher and a rival bid emerges.
current sp suggests more to come on this one.
I'm of the cynical opinion that there's a sordid back room deal with Echostar included here I'm afraid.
Management giving it away. Familiarity breeds contempt is a very true saying ..... worth well north of £6.00 Gutted.
Just out of curiosity, I've had a look at the exchange rate for US$. $7.21 converted to £5.47.
Let's just see what happens. There may be another bid, the markets may anticipate this & drive the price up.
All its & buts of course.
Rival bidders are flushed out. ISAT worth over 650 to them. IMO