Shares of the U.K. 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
The pursuit of Signature Aviation Plc turned into a three-way contest, with Global Infrastructure Partners rejoining the battle for the world's largest operator of private-jet bases after an earlier bid was rejected.
Signature Aviation agreed 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 U.K. 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 in an email.
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 Corp. 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.
Signature Aviation shares were up 8.3% to 439.60 pence as of 10:18 a.m. in London. The shares have gained more than 50% since mid-December, when talks with Blackstone were first reported.
GIP's recent deals include a $10.1 billion acquisition of natural-gas pipelines from Abu Dhabi as part of a consortium. In August, Bloomberg reported it was weighing a joint bid with Blackstone for Kansas City Southern railroad.
GIP made an earlier, lower offer in December that was rejected by Signature Aviation. Blackstone teamed with Microsoft Corp. founder Gates's Cascade Investment LLC after its December approach, and has until Jan. 14 to formalize its interest. Carlyle has until Feb. 4.
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