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 Markets 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. See full non-independent research disclaimer and quarterly summary.
See an opportunity to trade?
Go long or short on more than 16,000 markets with IG.
Spread bet and trade CFDs on our award-winning platform, with low spreads on indices, shares, commodities and more.
Live prices on most popular markets
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 spread betting and CFDs.
Stay on top of upcoming market-moving events with our customisable economic calendar.