CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Inmarsat to go private in $3.4 billion PE-led buyout deal

A private equity-led consortium has signed a deal to acquire the British satellite telecommunications operator in a move that will see the company de-listed.

A private equity-led consortium has opted to acquire Inmarsat for $3.4 billion in cash in a deal that will see the British satellite operator taken private.

The news come after the satellite company rejected a lower offer from its US-based rival EchoStar last year.

The consortium of private equity firms includes UK-based Apax Partners, US-based Warburg Pincus, Canada Pension Plan Investment Board (CPPIB) and Ontario Teachers Pension Plan Board.

Private equity-led offer sends Inmarsat’s share price higher

Based on the offer, Inmarsat’s shareholders will receive $7.21 cash or 546p per share, with the news of the offer helping to send the company’s stock 8.5% higher to 549p on Monday morning.

The deal, which still requires approval from the UK Competition and Markets Authority (CMA), is expected to come under heavy scrutiny from British regulators due to the company’s position as a strategic asset.

Inmarsat is a longstanding provider of satellite telecommunication services to the shipping industry and has grown its presence significantly within commercial in-flight broadband.

Deal secures majority shareholder support

The consortium announced that it received support for its bid from Inmarsat’s top shareholder Lansdowne Partners, which controls a 11.4% stake in the business.

The consortium’s bid, which was made in late-January, comes shortly after Inmarsat rejected a $3.25 billion offer from its US-based rival EchoStar.

Inmarsat has struggled as a business in recent following major losses in its maritime business – which equates to a 41% share of total sales – due to increased competition, applying downward pressure on the company’s revenues.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Be ready to act on ECB opportunities

Learn how the ECB’s monetary policy announcements affect interest rates and price stability ahead of its next meeting in 22 April 2021.

  • How might the next meeting affect the markets?
  • What are the key rate decisions to watch?
  • Why is the Governing Council announcement important for traders?

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.