The private equity consortium seeking to buy British satellite company Inmarsat has refused to up its bid or extend its expiration date ahead of a High Court hearing tomorrow, despite a legal challenge that could see the deal collapse.
Connect Bidco, a consortium involving Apax Partners, Warburg Pincus, Canada Pension Plan and Ontario Teachers’ Pension Plan, made its offer final and refused to extend the expiration date beyond 10 December.
The takeover plan is due to go in front of the High Court tomorrow, where a group of hedge funds led by Oaktree Capital is preparing to block its approval.
The hedge funds have built up stakes in Inmarsat after it accepted a $6bn offer to be bought by the Bidco consortium in May.
They argue that the price tag is too low because Inmarsat is set to receive an income boost from a US project that could gain approval from regulators this month.
Oaktree, along with hedge funds Kite Lake and Rubric, say a venture called Ligado could push up the value of Inmarsat.
In a statement today Bidco said: “The cash value being offered by Bidco represents a substantial premium to the pre-offer share price of Inmarsat.
“Bidco can also confirm that in determining the cash value and making the offer, Bidco factored in various potential risks and opportunities in Inmarsat’s business, including in relation to Ligado.
“Bidco continues to believe that the offer provides a compelling and deliverable opportunity for Inmarsat Shareholders to receive liquidity at this substantial premium.”
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