7th Nov 2019 17:14
(Alliance News) - Inmarsat PLC said Wednesday its takeover has now met all regulatory approvals, following the go ahead from the Foreign Investment Review Board in Australia.
Inmarsat in March agreed to a GBP3.4 billion takeover by a consortium including private equity firm Apax Partners LLP, Warburg Pincus International LLC, the Ontario Teachers' Pension Plan Board, and the Canada Pension Plan Investment Board.
At the end of October, the satellite firm said the regulatory conditions for the deal had been satisfied in Austria, China, Germany, Russia, Italy, the US and the UK but was awaiting a decision from Australia before a court hearing to sanction the takeover on November 12.
If the court hearing goes ahead, Inmarsat shares will be suspended from trading on the FTSE 250 on November 13 before being de-listed on November 14.
Earlier this week, however, Kite Lake Capital Management UK LLP joined Oaktree Capital Group LLC in raising concerns about the GBP3.4 billion takeover.
Kite Lake holds a 3.8% stake in Inmarsat. Funds and accounts managed by Oaktree Capital Management LP collectively hold a 2.9% stake in Inmarsat.
"The question we pose to the board is simple: given the material prospect of regulatory approval prior to the long stop date, would the board recommend a USD7.09 offer if it was made today? We believe the answer should be a categorical no," Kite Lake said in a statement on Tuesday.
Earlier Tuesday, Oaktree urged Inmarsat to postpone the court sanction hearing to allow the US regulatory approval process for its Ligado spectrum assets to conclude. Oaktree believes the takeover offer that Inmarsat ascribes no value to Ligado spectrum assets.
The UK government had also been pondering whether the deal could go ahead despite the UK Competition & Markets Authority finding no competition concerns in the deal.
However, the UK Ministry of Defence found two national security concerns: firstly, that insufficient security controls could result in unauthorised access to defence and security data held by Inmarsat, and secondly, that "certain capabilities" used by Inmarsat could be halted or sold abroad.
A third party also has raised concerns that Inmarsat could stop offering satellite services used in the Global Maritime Distress & Safety System.
Inmarsat and the buyers made a series of commitments to assuage these concerns. Including a promise to uphold any contractual agreements with the UK MoD and to give ample warning if it is not able to continue doing so.
Shares in Inmarsat closed 0.4% higher at 558.00 pence on Thursday in London.
By Paul McGowan; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
Inmarsat