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Bloomberg
The pursuit of Signature Aviation Plc turned into a three-way contest, with Global Infrastructure Partners (GIP) rejoining the battle for the world’s largest operator of private-jet bases after an earlier bid was rejected.
Signature Aviation agreed on Monday to a $4.63 billion buyout by GIP, while leaving the door open for higher offers. Investors will receive $5.50 per share held, equivalent to about 405 pence at current exchange rates, according to a statement.
Shares of the UK company surged as much as 8.9% in anticipation of a bidding war involving Blackstone Group Inc. and Bill Gates, Signature Aviation’s biggest shareholder. Carlyle Group said last week that it was also considering jumping in.
“Nothing precludes either Blackstone and Cascade or Carlyle from making an offer proposal that the board of Signature Aviation will consider,†the company said. The contest for Signature Aviation, which changed its name from BBA Aviation about a year ago, pits three of the world’s top financial investors against each other while drawing in Microsoft founder Gates, the world’s third-richest man. Infrastructure funds are flush with cash and are locking horns over investment targets.
GIP, led by former Credit Suisse executive Adebayo Ogunlesi, already owns aviation assets including Edinburgh airport. It said it sees opportunities for organic growth at Signature and bolt-on acquisitions.
“We plan to put customer service, operational consistency and growth at the heart of our strategy supported by plans to continue to improve employee engagement and through targeted investment,†Ogunlesi said in a statement.
Private flying is one of the few travel sectors to have benefited from the coronavirus pandemic, offering the well-heeled the opportunity to continue traveling while minimising risky contact with other passengers.