April 7 (Reuters) - Senior Plc on Tuesday said it had agreed to a takeover proposal from a consortium comprising investment firms Tinicum and Blackstone, valuing the British aerospace and defence
UK's Senior agrees to $1.9 billion takeover by aerospace investor Tinicum and Blackstone
Senior Plc's Acquisition and Market Context
April 7 (Reuters) - Senior Plc agreed on Tuesday to a 1.4 billion pound ($1.9 billion) takeover proposal from a consortium comprising Tinicum and Blackstone, potentially ending months of pursuit of the British aerospace and defence supplier.
Takeover Offers and Market Dynamics
Senior drew a flurry of takeover offers in recent months as buyers target British companies for their relatively cheaper valuations, and as rising defence spending driven by escalating geopolitical tensions sharpened interest in the sector.
Competing Bids and UK Takeover Rules
Private equity firm Arcline Investment Management walked away from a bid for Senior last week, nearly a month after the company rejected Advent's 1.14 billion pound proposal. However, under UK takeover rules, they could still return with bids under some special circumstances.
Share Performance
Shares in Senior, which had a market value of 1.21 billion pounds as of Tuesday, were trading largely flat as of 1257 GMT. They have gained nearly 15% since the approaches were first disclosed in late February.
Details of the Tinicum and Blackstone Deal
Offer Terms and Rationale
'CONVICTION IN SENIOR'
The 300 pence per share cash offer from U.S.-based investment firm Tinicum and Blackstone is at a 2.8% premium to Senior's last close, and will be recommended to its shareholders, the British company said. It added that the consortium's expertise in investing in the industry was a key contributor to its decision.
Shareholder Support
Senior's largest shareholder Alantra, which holds over 17% of the company, has expressed its willingness to vote in favour of the deal, the parties said.
Consortium's Track Record
Tinicum took TriMas' aerospace segment private for $1.45 billion with Blackstone in November last year.
Consortium's Strategic Vision
"As long-term investors in both aerospace and industrial sectors, the consortium has conviction in Senior and its growth potential," Tinicum said.
It added that it would merge its recently acquired AeroFlow Technologies with Senior to maximize earnings, if the deal goes through.
Senior Plc's Business Segments and Clients
While civil aerospace is Senior's biggest segment, the engineering group also supplies parts for land vehicles and defence businesses. Nearly 16% of its total revenue comes from defence and the company is a parts supplier to Lockheed Martin, Boeing and Airbus.
Additional Information
($1 = 0.7550 pounds)
(Reporting by Prerna Bedi and Simone Lobo in Bengaluru; Writing by Pushkala Aripaka; Editing by Vijay Kishore and Emelia Sithole-Matarise)
