WIMBORNE MINSTER (dpa-AFX) - Military and civil systems provider Cobham Plc. (COB.L) said Thursday that it has agreed to be acquired by U.S. private equity group Advent International for 4 billion pounds.
In a statement, Cobham said that the boards of Bidco and Cobham have agreed on the terms of a recommended cash acquisition of the entire issued and to be issued ordinary share capital of Cobham by Bidco.
Bidco is an indirect subsidiary of funds managed by private equity group Advent International.
The acquisition values the entire issued and to be issued ordinary share capital of Cobham at about 4.0 billion pounds on a fully diluted basis.
Under the terms of the acquisition, Cobham shareholders shall be entitled to receive 165 pence in cash for each Cobham share held by them. The offer price represents a 34.4 percent premium to Cobham's closing price of 123 pence on 24 July 2019.
'We believe that Advent would provide a complementary partner for Cobham's stakeholders. The Cobham Board is unanimously recommending the offer from Advent as it represents an opportunity for shareholders to realise their investment in Cobham in cash in the near term,' Jamie Pike, Chairman of the board of Cobham, said.
Cobham said that the acquisition proposal shall be put to its shareholders at the Court Meeting and at the General Meeting.
The company's directors intend to recommend unanimously that Cobham shareholders vote in favor of the deal, which is expected to become effective before the end of 2019.
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