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London-based Inmarsat gets green signal for $3.4bn sale

The contesting shareholders were objecting to the billion-dollar sale, arguing that the sale price of Inmarsat did not adequately reflect the value of a contract in place with Ligado Networks.

The $3.4bn sale of London-based satellite operator Inmarsat to a consortium has received the green signal to proceed after “contesting shareholders” withdrew their objections in a last-minute High Court reversal of their position.

The consortium, led by Apax Partners and Warburg Pincus, Canada Pension Plan Investment Board and Ontario Teachers’ Pension Plan Board, said: “Having considered our position carefully, we now no longer intend to raise objections to the scheme being sanctioned at the hearing.”

The contesting shareholders are hedge funds and were seeking a higher value return from the incoming buyers and arguing that the sale price of Inmarsat did not adequately reflect the value of a contract in place with Ligado Networks. They argued that the Ligado contract was worth an extra $300 million, and thus not reflected in the sale to the acquiring consortium.