Advent International agrees £4bn take-private for Cobham

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Advent International has agreed a £4bn take-private for UK-based aerospace and defence supplier Cobham.

The listed company's board of directors has unanimously recommended that shareholders vote in favour of the offer, which values shares in the company at 165 pence apiece. The proposed pricing represents a 50.3% premium on the average share price across the last three months, and 34.4% on the closing price on 24 July.

According to its interim financial results, Cobham's underlying operating profit increased by 12% to £107.1m in H1 2019, compared with the same period in 2018. The business had issued a number of profit warnings between 2015 and 2017, which led to a significant drop in its share price from a high of 244 pence in February 2015 to a low of 81 pence in February 2017.

Advent has so far received irrevocable undertakings and letters of intent to vote in favour of the takeover amounting to 5.2% of the listed group's issued shares.

Cobham manufactures and develops a number of components and technology systems for the aerospace, maritime and defence sectors. These include missile guidance systems, radar systems, internet connectivity, oxygen systems, satellite guidance, and communications systems, satellites and antennas. It also provides services including radiation testing and electronic manufacturing.