16th Aug 2021 08:41
(Alliance News) - Ultra Electronics Holdings PLC on Monday said it has agreed to a GBP2.6 billion takeover offer from former London listing Cobham Group Holdings Ltd, which has pledged to protect UK jobs in a bid to woo regulators.
Cobham will pay GBP35.00 per share in cash for Ultra, valuing the firm at about GBP2.57 billion, which includes a 16.2 pence interim dividend declared earlier by Ultra.
Ultra Electronics shares were 4.1% higher at 3,292.00p each in London on Monday morning.
London-based aerospace and defence engineering company Ultra Electronics in July said it had received a non-binding proposal of GBP35.00 per share from Cobham.
This followed a number of earlier proposals, Ultra said, the first of which was made on June 29 at a price of GBP28.00 per share. Cobham had said on June 25 that it was considering a combination with Ultra. Later that day, Ultra confirmed it had held early talks, but said it had terminated discussions.
On Monday, Ultra said: "Cobham recognises the specific importance of Ultra's contribution to the UK's economy and national security and therefore Cobham and Cobham Group Holdings have agreed with Ultra in the cooperation agreement that they will offer legally binding and enforceable commitments to HM government in respect of the Ultra group."
Aerospace contractor Cobham was a FTSE 250 company before it was bought by private equity firm Advent International in January 2020 in a controversial deal which had sparked debate over UK national security.
Cobham on Monday said it is committed to "safeguarding and supporting the UK's national security", and it outlined plans to invest in "Ultra's UK work force by protecting existing and creating new UK manufacturing and engineering jobs".
"Cobham also intends to establish a forum between it and the relevant representatives of HM government to enable ongoing dialogue, co-operation and monitoring to ensure that HM government has full visibility of Cobham's delivery of the commitments," Cobham added.
Ultra's directors backed the deal, which needs regulatory backing in the UK, US, Germany, Australia, Canada, Austria and Turkey.
By Eric Cunha; [email protected]
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