5th Nov 2019 12:16
(Alliance News) - Inmarsat PLC on Tuesday confirmed that it is aware of the recent commentary regarding the potential Ligado Networks LLC licence modification, but said it still "remains uncertain".
Therefore, Inmarsat said it intends to maintain the scheme sanction hearing scheduled for Tuesday next week, highlighting that there has been no "material change" since it recommended the takeover.
"The Inmarsat board is mindful of its fiduciary duties and continues to monitor any developments regarding Ligado," the company said in its statement Tuesday.
Earlier on Tuesday, Oaktree Capital Group LLC urged Inmarsat to postpone the court sanction hearing to allow the US regulatory approval process for its Ligado spectrum assets to conclude.
Funds and accounts managed by Oaktree Capital Management LP collectively hold a 2.9% stake in Inmarsat.
The FTSE 250-listed satellite firm 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.
Inmarsat has provisionally booked a court hearing to sanction the takeover on Tuesday next week.
Oaktree on Tuesday said it believes the takeover offer that Inmarsat recommended to its shareholders earlier this year ascribes no value to Ligado spectrum assets.
"We believe that the movement of the Federal Communications Commission towards granting approval of the Ligado lease in August/September and October are material circumstances relevant to shareholders in respect of the scheme. They have arisen after the date of the shareholder vote. The company has not communicated with, or notified shareholders, of these developments," Oaktree said in its statement Tuesday.
Oaktree added: "Under these circumstances, we request the board to delay the hearing until early December to allow for the possibility of the Federal Communications Commission approving the Ligado lease. There is sufficient time before the December 10 longstop date in respect of the takeover offer to allow for this."
Oaktree believes that Inmarsat should negotiate with the consortium for a contingent value right to allow shareholders to participate in the upside of the Ligado lease should Federal Communications Commission approval be obtained whether before or after the effective date of the takeover.
Inmarsat shares were trading 0.1% lower on Tuesday in London at 551.26 pence each.
By Evelina Grecenko; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
Inmarsat