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July 23 (Reuters) - British aerospace and defence group
Cobham has made a takeover offer for Ultra Electronics
in a deal valuing the defence engineering supplier at about 2.58
billion pounds ($3.55 billion), Ultra said on Friday.
The offer represents about a 42% premium to Ultra's last
closing price and was higher than a previous bid made in June,
Ultra said.
Cobham, which was taken private by private equity firm
Advent International last year for 4 billion pounds, has
proposed paying 35 pounds per share in cash for London-listed
Ultra, with shareholders also entitled to the interim dividend
of 16.2 pence apiece, Ultra said.
It said it could recommend the proposal to its shareholders.
Cobham, known for its pioneering air-to-air refuelling
technology, has told Ultra that it was "minded" to offer
undertakings to the British government in respect of national
security.
On Friday, Ultra said Cobham first made a proposal at a
price of 28 pounds a share in June.
The two companies both operate in the aerospace and defence
sectors. In a June statement confirming talks, Cobham said it
was interested in Ultra with a view to creating a "global
defence electronics champion" as they provide complementary
solutions to the United States, UK and other key allies.
($1 = 0.7271 pounds)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Arun
Koyyur, Shailesh Kuber and Susan Fenton)
