|Bid||583.20 x 0|
|Ask||583.40 x 0|
|Day's Range||578.00 - 586.01|
|52 Week Range||355.00 - 588.40|
|Beta (3Y Monthly)||1.57|
|PE Ratio (TTM)||20.65|
|Earnings Date||Nov 7, 2019|
|Forward Dividend & Yield||0.16 (2.73%)|
|1y Target Est||7.17|
(Bloomberg Opinion) -- The 2.7 billion-pound ($3.3 billion) offer for Greene King Plc from an investment group backed by Hong Kong billionaire Li Ka-shing is a sign one thing is certain whatever the outcome of Brexit: Brits will keep drinking beer and eating pies.Greene King isn’t an international business pretending to be a U.K. company like Arm Holdings Plc, Inmarsat Plc, Cobham Plc or even Merlin Entertainments Plc – all of which generate most of their revenue from overseas and have received takeover offers since the referendum in 2016. The pub chain’s revenue is 100% in pounds.Yet its attractions are plain to see. The U.K. pubs industry has shed capacity in recent years. The survivors have adapted by offering food and making pubs more family friendly. Contrast that with the casual dining industry, where pizza chains in particular have proliferated and poisoned returns. Greene King owns most of its 2,700 sites. That will provide some comfort to CK Asset Holdings Ltd., which is more accustomed to investing in solid U.K. rail, water and real estate assets.The timing is telling. Greene King was more affordable last year when its shares hit their lowest since 2011. But back then its board might have been less amenable to a deal. Since then, the pound has continued to slide.CK’s offer, pitched at a 51% premium to where the stock was trading just before the bid, gives investors a price they haven’t seen since the Brexit vote at a time when U.K. stocks are deeply unpopular with international money managers. That high top-up may assuage fears management rushed to back a deal that is likely to see them stay in their posts.It may seem like a small, bullish sign for U.K. equities. The reality, though, is there are few companies that share Greene King’s characteristics.To contact the author of this story: Chris Hughes at firstname.lastname@example.orgTo contact the editor responsible for this story: Edward Evans at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Britain said on Monday it would scrutinise the acquisition of satellite communications firm Inmarsat by a private equity-led consortium to examine any potential impact on national security. Inmarsat, which provides communications to shipping, aircraft, military forces and other groups worldwide, agreed in March to be acquired for $3.4 billion in cash by a consortium comprising Apax, Warburg Pincus, Canada Pension Plan Investment Board and the Ontario Teachers' Pension Plan. The British government said the Competition and Markets Authority would examine the competition and national security aspects of the deal, and would submit a report to the relevant minister by Sept. 17.
The Competition and Markets Authority (CMA) said on Tuesday it was looking into whether the proposed acquisition of Britain's largest satellite company Inmarsat by a private equity-led consortium would affect the competitive landscape. The review comes amid a tough regulatory environment for mergers and acquisitions (M&A), with the CMA previously blocking Sainsbury's 7.3 billion pound takeover of Walmart-owned Asda in April. Founded in 1979, Inmarsat was set up by the International Maritime Organization as a way for ships to communicate with shore and make emergency calls.
(Bloomberg Opinion) -- Shareholders in Merlin Entertainments Plc are poised to exit the theme park.The company that operates Legoland resorts and Madame Tussauds wax museum has agreed to a 4.8 billion pound ($6.1 billion) joint bid from Blackstone Group LP, the family behind the Lego empire, and Canadian pension fund CPPIB.The offer continues the trend for private equity groups to buy back the businesses that they once owned, and are languishing in public markets. The descendants of Lego founder Ole Kirk Christiansen sold a share of their stake in Merlin to Blackstone in 2005, and the company was listed in London in 2013. The family has held a stake throughout, and it now stands at almost 30%. Companies that are unloved in the stock market make good targets for a second bite of the cherry by the private equity firms that were previous owners. They know the businesses well. Add in the fact that buyout funds have more money than they know what to do with, and you have deals for U.K. satellite company Inmarsat Plc and Swedish building materials group Ahlsell AB.The 455 pence per share offer for Merlin represents a 15% premium to the closing share price on Thursday, and looks fair. It is around the level the stock was were trading at before a lackluster trading update in Oct. 2017, when demand for the company’s attractions was dented by nervousness about terrorism and the first signs of the U.K. consumer slowdown. The shares have traded lower ever since. They rose 14% on Friday, to just below the offer price.As for the buyers, it’s hard to see what they can do differently. Having come from private equity ownership, the company is already pretty efficiently run. There isn’t scope for big cost cuts. Current management will continue.What will be change is how patient investors will be. Blackstone is making the investment from its long-term fund, which typically has a time horizon of at least ten to 15 years. In private hands there’s scope for owners to allow ample time for investments to pay off, a point made by activist investor ValueAct Capital, which has a 9.3% stake. Merlin has spent about 1 billion pounds over the past three years developing its attractions, but the potential benefit from this has not been reflected in earnings, or the share price.The new owners are betting that the investments the company is currently making will ultimately generate returns. At that point, the Merlin can achieve an appropriate evaluation in public markets.There is one wild card: a combination with Whitbread Plc, which has been mooted by some analysts. The company is focused on hotels now that it has shed its Costa Coffee chain. It wants to expand internationally, and Merlin’s global reach would help. Merlin, meanwhile, is building accommodation in its attractions. Whitbread would bring an experienced operator, plus potential synergies.The large number of hotels that the group would own outside of Merlin’s attractions is a significant stumbling block, and makes a deal a stretch.But with the potential for Whitbread to come under pressure to bolster returns from its hotel division, Merlin’s new owners should consider the combination as another route to create value from the buyout.To contact the author of this story: Andrea Felsted at firstname.lastname@example.orgTo contact the editor responsible for this story: Jennifer Ryan at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
On Tuesday, Blackstone Group LP & Hellman & Friedman failed to secure enough support for their bid to buy Scout24 AG four years after the pair took the German directories business public. Inmarsat Plc is being taken over by group of private equity firms including Apax Partners LLP and Warburg Pincus LLC. Owners of 79% of the company’s stock backed the deal, exceeding the offer’s 75% threshold.
Investors in Inmarsat voted on Friday to sell the British satellite firm to a private equity-led consortium for $3.4 billion (2.6 billion pounds) following a recommendation from the company's board that the offer was fair and reasonable. Nearly 79 percent of shares voted supported a so-called scheme of arrangement for the takeover by a consortium comprising UK-based Apax Partners, U.S.-based Warburg Pincus and two Canadian pension funds, Inmarsat said. Inmarsat's board recommended the $7.21 per share cash offer in March, saying that although it was confident in the long-term prospects of the company, it would take time for the investment needed in its satellite networks to deliver returns.
Inmarsat, the British satellite firm that agreed a $3.4 billion (£2.6 billion) private-equity takeover in March, reported a 13 percent fall in quarterly earnings, hit by weak demand from the shipping sector and a lower contribution from partner Ligado. Shareholders will vote on the offer from a consortium of UK-based Apax Partners, U.S.-based Warburg Pincus and two Canadian pension funds on May 10. The mobile satellite communications provider has been selling in-flight Wi-Fi to airlines through its aviation business, which cushioned some of the blow from declines in its older products.
As far as the stock is concerned, it was a success: Boeing shares ended up 5 percent on the week as investors took heart from the company’s progress on rolling out an update for anti-stall flight-control software that’s thought to have been a factor in two fatal crashes. As far as rebuilding confidence in the plane and thwarting scrutiny over the cozy relationship between Boeing and the FAA, it fell flat. Boeing’s proposed update will make it easier for pilots to manually override the so-called Maneuvering Characteristics Augmentation System, and the software will now compare readings from two sensors before pushing the plane’s nose down.
Moody's Investors Service ("Moody's") has today placed on review for downgrade Inmarsat plc's ("Inmarsat") Ba2 Corporate Family Rating, Ba2-PD Probability of Default Rating (PDR) as well as the Ba3 ratings on Inmarsat Finance plc's $1.0 billion Senior Unsecured Global Notes due 2022 and $400 million Senior Unsecured Global Notes due 2024, which are unconditionally guaranteed by Inmarsat Group Limited and Inmarsat Investments Limited. The outlook for both entities has been changed to rating under review from stable.
The FTSE 100 fell 0.4 percent and the domestically-focussed FTSE 250 shed 1.1 percent to hit its lowest since Feb. 12. Last week's cautious remarks from the U.S. Federal Reserve and weak manufacturing data from Germany and the United States once again raised concerns about the world economy, making stocks, generally considered riskier assets, less appealing.
The consortium, which includes UK-based Apax Partners, U.S.-based Warburg Pincus and two Canadian pension funds, is betting in part on Inmarsat's reputation for selling faster and more reliable in-flight Wi-Fi to commercial airlines worldwide. Inmarsat shareholders will get $7.21 cash, or 546 pence per share. Inmarsat's shares were up 8.9 percent at 551 pence by 1422 GMT, higher than the offer price.