18th Feb 2021 17:43
(Alliance News) - Carlyle Investment Management LLC on Thursday said that, after "careful consideration", it does not plan to make a firm takeover offer for Signature Aviation PLC.
Earlier in February, Signature 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.
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 saw Brown Bidco offer USD5.62 per Signature share, or 411 pence, in cash, valuing the company at USD4.73 billion. Should all go to plan, the Brown Bidco acquisition will be sealed in the second quarter of 2021.
Shares in Signature Aviation closed down 1.2% at 398.40 pence in London on Thursday.
By Lucy Heming;Â [email protected]
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