(Alliance News) - Signature Aviation PLC went a step closer to private ownership on Friday after two former takeover rivals joined forces to acquire the London-based aviation services firm.
The FTSE 250 company said it has recommended an offer by newly formed acquisition vehicle Brown Bidco Ltd, which consists of US-based private equity firm Blackstone and former suitor Global Infrastructure Partners. The consortium also includes Cascade Investment LLC, a fund which manages Bill Gates's investments.
The offer values Signature at USD4.73 billion, about GBP3.46 billion.
Shares in the company were 2.9% lower at 413.10 pence each in London on Friday morning, giving it a market capitalisation of around GBP3.42 billion. The stock is up 68% since bid interest first emerged in December.
Back in January, GIP fought off interest from Blackstone, which had secured the backing of Cascade, to acquire Signature for USD4.63 billion.
Global Infrastructure had said it would pay USD5.50 for each Signature Aviation share, a 51% premium to the aviation services company's 268 pence share price on December 16, the day before talks between the two parties were first announced.
Although Signature had said the offer from GIP IV Hancock Bidco LP, controlled by GIP, was "fair and reasonable", it also kept its options open.
The new deal announced on Friday will see Brown Bidco offer USD5.62 per Signature share, or 411 pence, in cash, valuing the company at USD4.73 billion.
Signature noted that Cascade and the Bill & Melinda Gates Foundation Trust already own just over 19% of the company's shares.
"The Signature directors, who have been so advised by JP Morgan Cazenove and Jefferies as to the financial terms of the cash offer, consider the terms of the cash offer to be fair and reasonable," the company explained.
"Accordingly, the Signature directors intend to recommend unanimously that, in the case of the court meeting, the scheme shareholders and, in the case of the general meeting, Signature shareholders vote in favour of the resolutions."
Signature backed the initial GIP offer on January 11, three days after Blackstone and Cascade said they would team to make a cash offer of USD5.17 per share.
Also in January, Signature noted press coverage and confirmed it received had an approach from Carlyle.
Should all go to plan, the Brown Bidco acquisition will be sealed in the second quarter of 2021.
By Eric Cunha; ericcunha@alliancenews.com
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