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CORRECTED-UPDATE 2-Inmarsat in $3.3 bln go-private transatlantic deal talks (March 19)

Published 2019-03-20, 03:06 p/m
Updated 2019-03-20, 03:06 p/m
CORRECTED-UPDATE 2-Inmarsat in $3.3 bln go-private transatlantic deal talks (March 19)

(Corrects last paragraph in March 19 story to say Panasonic Avionics is headquartered in the United States and is a unit of Japan's Panasonic Corp)

* Consortium offers $7.21 per share for Inmarsat

* Offer at premium of 24 pct to Inmarsat' Tuesday close

* Inmarsat says not certain discussions will lead to formal offer

March 19 (Reuters) - Inmarsat Plc ISA.L said on Tuesday it has received a cash takeover offer from a private equity-led consortium, a deal that would value the British satellite company at about $3.3 billion and take it private.

The consortium, which includes UK-based Apax Partners, U.S.-based Warburg Pincus and Canada Pension Plan Investment Board (CPPIB), offered $7.21 per share on Jan. 31 and the proposal remains under discussion, Inmarsat said in a statement.

The $7.21 (543 pence) per share offer is at a premium of about 24 percent to Inmarsat's Tuesday close of 437.8 pence on the London Stock Exchange. The offer price represented a premium of about 47 percent when the proposal was made on Jan. 31.

The company said it is not certain the discussions will lead to a formal offer.

Ontario Teachers' Pension Plan Board would also be supporting the proposal as part of the consortium, Inmarsat said.

The group is required to make a formal offer by April 16, the FTSE 250 company said.

The offer values Inmarsat at $3.3 billion, according to Refinitiv Eikon data.

An external representative for Warburg Pincus declined to comment. Apax and CPPIB did not respond to requests for comment.

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Last year U.S. satellite group EchoStar Corp SATS.O walked away from discussions to buy Inmarsat after it rejected a $3.25 billion cash and stock offer. takeover of the company could be closely scrutinised by the British government because of the British satellite company's position as a strategic asset.

Founded in 1979, Inmarsat was set up by the International Maritime Organization as a way for ships to stay in communication with shore and make emergency calls.

The company sees a growing opportunity to supply in-flight broadband services to commercial aircraft, having partnered with U.S.-headquartered Panasonic Avionics, a unit of Japan's Panasonic Corp 6752.T , in September last year. ($1 = 0.7537 pounds)

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