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Private equity consortium orbiting Inmarsat

The satellite group is once again the subject of a takeover bid
March 21, 2019

Global satellite communications group Inmarsat (ISAT) has received yet another takeover approach. After market close on Tuesday 19 March, noting media speculation, it confirmed its receipt of a non-binding proposal from Apax Partners, Warburg Pincus and Canada Pension Plan Investment Board on 31 January. Ontario Teachers’ Pension Plan Board subsequently joined the consortium.

IC TIP: Hold at 511.30p

The deal values each Inmarsat share at $7.21 (547p), or $3.3bn in total – representing a decent premium to Inmarsat’s closing price on the day prior to notification (431p). The shares climbed by nearly a fifth in response.

Inmarsat noted that the proposal remains under discussion, and that “there can be no certainty as to the terms on which any offer would be made” – nor is there certainty that a firm offer will be made. A decision is due on 16 April.

Last July, Inmarsat’s board rejected an offer from EchoStar “on the basis that it very significantly undervalued Inmarsat and its standalone prospects”. The offer was then withdrawn. In June, Eutelsat said that it was “currently evaluating a possible offer for Inmarsat”, although it confirmed that it did not intend to proceed with an offer the very next day.