Danish satellite communications equipment manufacturer Thrane & Thrane has rejected a takeover attempt by UK-based aerospace and defence technology firm Cobham.
Cobham’s offer valued the target at DKr2.42bn (US$427m), with a bid representing…
Danish satellite communications equipment manufacturer Thrane & Thrane has rejected a takeover attempt by UK-based aerospace and defence technology firm Cobham.
Cobham’s offer valued the target at DKr2.42bn (US$427m), with a bid representing DKr420 (US$74) per share. The offer price represents an acquisition multiple of almost 12.5 times Thrane’s 2011 EBIT.
However, Cobham announced on 13 March that it had decided to withdraw this offer after it was rejected by Thrane’s board, although the group added that it could reconsider its position at any time.
“Cobham’s strategy is to build market leadership positions in its strategic business units by investing in technology, particularly with exposure to commercial market segments, and it has identified Thrane & Thrane as one such potential target,” the company said in a statement.
“Cobham believes there would be significant benefits from a combination of its satcom business with Thrane & Thrane. Cobham’s proposal envisages that Thrane & Thrane would continue to be run by its current management team in Denmark. It would become one of Cobham’s principal global businesses and a focus for future investment.”
Thrane revealed on 27 February that it had hired FIH Partners to carry out a strategic review after it received an unsolicited approach from a third party for a majority stake. Following Cobham’s decision to withdraw its offer, Thrane said it will continue its strategic review process regardless, and will announce the result of it no later than 14 May, as previously planned.
Thrane manufactures equipment and systems for global mobile communication based on satellite and radio technologies. It also develops land earth stations for various Inmarsat services, with around 600 staff across Denmark, Sweden, Norway, China, Singapore and the US. For the year to 30 April 2011, the company posted DKr1.093bn (US$193m) in revenue on an operating profit of DKr194m (US$35m).
Late last year Cobham announced plans to acquire US satellite communication antenna systems developer Trivec-Avant for up to US$144m. This bolt-on acquisition came after Trivec-Avant hired McGladrey Capital Markets to find a buyer. According to Cobham, the deal was made because Trivec’s technology, product range and customer base was highly complementary to its Antenna Systems strategic business unit.
