23rd Jul 2021 08:36
(Alliance News) - Ultra Electronics Holdings PLC on Friday said that Cobham Ltd has made a possible offer of GBP2.58 billion which it would be minded to accept, having earlier terminated deal talks.
The London-based aerospace and defence engineering company confirmed that on Wednesday it received the non-binding proposal, worth GBP35.00 per share in cash. Shareholders would also be entitled to its interim dividend of 16.2 pence announced at the start of the week, making the offer worth GBP35.16 per share.
Shares in Ultra were up 33% to 3,294.00 pence in London on Friday morning, making it the top performer in the FTSE 250 index.
The possible offer, together with the interim dividend, values Ultra at around GBP2.58 billion and represents a premium of 63% to its closing price on June 24, the day prior to the start of the offer period. It also marks a 42% premium to Thursday's closing share price of GBP24.70.
There is no certainty that a firm offer will be made. Cobham has until August 20 to announce a firm offer or walk away.
The latest approach follows 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 held early talks but said it had terminated discussions.
Aerospace contractor Cobham was a FTSE 250 company before it was bought by private equity firm Advent International in January 2020.
"Having considered the proposal, the board has indicated to Cobham that it is at a value the board would be minded to recommend to Ultra shareholders, subject to consideration and satisfactory resolution of other terms and arrangements, including the establishment of safeguards for the interests of Ultra's stakeholder groups," said Ultra.
By Ivan Edwards; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
ULE.L