LONDON- British defence and aerospace group Cobham Plc said on Monday its investors had backed a $5 billion buyout offer from U.S. private equity firm Advent International.
Of the shares voted before the meeting, 93% backed the takeover. Advent agreed to buy Cobham, known for its pioneering air-to-air refuelling technology in July.
Chairman Jamie Pike said the board did not take a short-term view, had intense talks with Advent and decided that the offer of 165 pence per share was adequate recompense for the company’s prospects.
The price represented a 50% premium to the three-month average price at the time.
Cobham, which employs 10,000 people and also makes electronic warfare systems and communications for military vehicles, was shaken by a string of profit warnings in 2016 and 2017, forcing it to raise cash from shareholders.
CEO David Lockwood embarked on a turnaround strategy more than two years ago, focused on improving the company's financial and operating performance.
The buyout comes as sterling's weakness against other major currencies makes British assets highly attractive. Sterling earlier this month was trading at its lowest levels, excluding a brief "flash crash" in 2016, since 1985. ($1 = 0.8042 pounds)
(Reporting by Paul Sandle and Noor Zainab Hussain in Bengaluru; editing by Kate Holton) ((email@example.com; 0044 207 542 8560; Reuters Messaging: firstname.lastname@example.org))