24th Jun 2019 12:28
(Alliance News) - Takeover target Inmarsat PLC said Monday it entered into a USD51 million settlement agreement with RigNet over the Global Xpress take-or-pay contract following a dispute resolution process.
Inmarsat, a satellite telecommunications firm, will receive the USD51 million final settlement from RigNet following an arbitration case at the International Centre for Dispute Resolution. The process first began in 2016.
In 2018, Inmarsat generated pretax profit of USD167.9 million from revenue of USD1.47 billion.
The settlement was related to a 2014 take-or-pay contract with RigNet related to the Global Xpress satellite broadband service of Inmarsat. A take-or-pay contract demands the customers either takes the product or service agreed or pay a penalty for not doing so.
Inmarsat explained it would receive the funds through payments in three tranches. The first two tranches - valued at USD50 million - will be paid before the middle of July.
Shares in Inmarsat were 0.4% lower at 542.40 pence on Monday in London.
In March, Inmarsat agreed to a USD3.4 billion takeover offer from a consortium led by UK private equity firm Apax Partners LLP.
The Apax consortium - which includes Warburg Pincus International LLC, the Ontario Teachers' Pension Plan Board, and the Canada Pension Plan Investment Board - made a USD7.21 per share offer for the FTSE 250-listed firm.
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