TORONTO, ON / ACCESSWIRE / January 8, 2021 / Woori BMO Group has today commented on Bill Gates' Cascade Investment LLC, the majority shareholder in Signature Aviation, and Blackstone as both firms reach advanced talks with the London-based firm on a $5.17-a-share cash offer. In December, Signature said it would accept Blackstone's approach if a solid offer were presented at that level.
Gates involvement means Blackstone becomes the firm favorite to buy Signature after Carlyle Group Inc. confirmed Thursday it was also exploring a potential bid. A rival suitor, Global Infrastructure Partners, said in December that it was evaluating its options after its lower offer was rejected.
"This morning in London, Signatures shares were trading 4.8% lower. The stock was priced at 397.90 pence, equivalent to $5.40 apiece," commented Andrew Williams, Director of Institutional Equity at Woori BMO Group.
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Under the Blackstone proposal, Microsoft founding member Gates, who owns 19% of Signature, will contribute his shareholding and additional capital to become a 30% owner. Blackstone controls 70% of the bidding entity.
"Signature sold parts distributor Ontic last year for $1.4 billion. Since then, the company has become a solid takeover target," commented Christian Harper, Director of EMEA Wealth Management at Woori BMO Group.
The Aviation company has also made a number of investments, it acquired competitor Landmark Aviation from Carlyle for $2.1 billion in 2016, and bought Epic Fuels for $88 million in 2018.
Gates became an investor in 2009, holding his stake through Cascade Investment LLC.
When it initially confirmed Blackstone's proposal, Signature Aviation also said it had declined an indicative bid from U.S. company Global Infrastructure Partners about an offer that was lower than Blackstone's. GIP said it was evaluating its options in response to that.
About Woori BMO Group
Founded in 2007, Woori BMO Group is a full-service wealth management company providing both corporate institutions and private clients a tailored financial advisory service from its retail office in Toronto, Canada.
Company: Woori BMO Group
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SOURCE: Woori BMO Group