Inmarsat consider bid from APAX

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Inmarsat-016b

Breaking news

Editors Note: I have seen recent chatter relating to a belief that this is the same APAX that acquired Marlink. Some believe this will create a Diaggio style monopoly. So to be very clear….

The APAX relating to Marlink is a separate company to one relating to Inmarsat.  So these are not related.

The Board of Inmarsat and the Consortium [Triton Bidco] have reached agreement on the terms of a recommended all cash offer from the Consortium. Since the proposal was made on 31st January, Inmarsat has held discussions with the Consortium and believe the offer is fair and reasonable;  taking into account both the financial terms and the Consortium’s intentions for the Company.

 

The Board of Inmarsat believes that the company’s shareholders should be given the opportunity to vote on the offer, which will take place on or before 31st May 2019.

 

The Consortium recognises Inmarsat’s growth potential and shares our confidence in our long-term prospects.  The Consortium have stated that they intend to maintain Inmarsat’s UK headquarters and recognises the value and importance of the company’s people and Inmarsat’s continued investment in R&D at levels consistent with our past practice.

 

This is an all-cash offer of $7.21 (£5.46 based on current exchange rates) per share (including the previously declared final dividend of $0.12 per share), at a value of $3.4 billon (approx. £2.6 billion) for the Company’s issued and to be issued share capital.  This represents an Enterprise Value multiple in excess of 9x (based on consensus forecasts) and an attractive premium of 46% to the closing price of the day prior to the Consortium submitting its non-binding proposal to Inmarsat.

 

Quote from the Consortium in 2.7 announcement:

“As experienced and long-term investors in telecommunications, the Consortium values and admires Inmarsat for its proven expertise in maritime, aviation, defence and broadband satellite communications, alongside its strong market positions and potential for growth. Our planned ownership will enable this innovative British company to fulfil its ambitions to become a global leader in next-generation satellite communications, including the fast-growing market for commercial aviation in-flight connectivity. Following completion of the transaction, we intend to maintain Inmarsat’s UK headquarters, and to work with its highly skilled workforce to realise the company’s full potential.”

 

Quote from Andrew Sukawaty in 2.7 announcement:

“Inmarsat is a business which continues to grow as we invest in our infrastructure to support our customers’ requirements. Increasingly, these requirements are for higher performance broadband connectivity. The expertise and skills of our employees, together with continued investment in our technology and infrastructure, are integral to delivering on our growth potential. We are pleased that The Consortium recognises this and that we are able to present this offer to shareholders.”

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