11th Jan 2021 09:20
(Alliance News) - Signature Aviation PLC has agreed to a USD4.63 billion takeover, suitor Global Infrastructure Partners said on Monday, fighting off interest from US-based private equity firm Blackstone, which had secured the backing of Bill Gates.
Global Infrastructure said it will 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.
Signature Aviation shares were 8.5% higher at 440.60p each in London on Monday morning, the best mid-cap performer.
Signature Aviation's directors said the offer from GIP IV Hancock Bidco LP, controlled by GIP, is "fair and reasonable" and have backed the takeover bid.
"We believe that the offer from GIP represents an attractive and certain value in cash today for Signature shareholders, reflecting the high quality of the business and its network, its people and its future prospects. The Signature directors believe that the proposal provides clear benefits to Signature shareholders and GIP's operational and financial resources will generate enhanced opportunities for our employees, and ensure continued high-quality, full-service flight support for B&GA travel," Signature Aviation said.
The agreement ends a bidding war for the FTSE 250 company, which back in December said it told Blackstone it "would currently be minded to recommend" a firm takeover bid by the private equity firm.
Signature Aviation earlier in December had confirmed it held talks with Blackstone Infrastructure Advisors LLC and Blackstone Core Equity Management Associates LLC for a possible cash takeover offer of USD5.17 per share.
On Friday, New York-based Blackstone said it had formed a consortium with Cascade Investment LLC to make a bid for Signature. Cascade is a fund which manages Bill Gates's investments.
GIP also fought off interest from Carlyle Investment Management LLC. Signature on Thursday noted press coverage and confirmed it received an approach from Carlyle.
By Eric Cunha; [email protected]
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