4th Sep 2019 09:22
(Alliance News) - Satellite firm Inmarsat PLC has lost its case against the UK tax collector going back to the 1990s, the company said on Wednesday.
A tribunal has decided there is no tax deduction available for Inmarsat for the launch costs for some satellites sent up between 1990 and 1997.
Inmarsat said because this is a long-standing matter, it had already provided for the potential liability of the case, estimated at around USD100 million plus interest.
The company will look at the tribunal's findings before deciding whether to appeal.
Shares were 0.9% lower Wednesday morning at 603.00 pence each.
Inmarsat is currently under a GBP3.4 billion bid by a consortium led by private equity firm Apax Partners LLP. Other parties include Warburg Pincus International LLC, the Ontario Teachers' Pension Plan Board, and the Canada Pension Plan Investment Board.
The UK Competition & Markets Authority is currently looking into the deal, with a deadline to present a report to the UK government on October 8. The government has handed down a public interest intervention notice on the deal, and it has the power to block the takeover on national security grounds.
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