Cobham (COB) shares fly high following takeover bid

Advent International put in an all-cash offer that is great news for investors.

  • Shares are up 35% in this morning’s early deals as a cash takeover offer from Advent International was agreed.
  • Shareholders will receive 165p for each of their shares – 34% more than the company’s closing share price on Wednesday.

UK defence company, Cobham, has agreed to a £4bn takeover by US private equity group Advent International. The offer is 165p in cash which represents a decent 34% premium to yesterday’s close and a level not seen by the shares for three years. The company produces a wide range of products and systems across the aviation sector, employing 10,000 people in total, and supplies parts for the UK defence sector.

Cobham has struggled over the past three years with sales and profits falling back, but there have been more positive signs in recent results. The move by Advent may attract some attention from the government given the defence implications, although the government is rather distracted with a number of other matters at present. However, the premium being paid by Advent in an all-cash offer is good news for investors.

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