Cobham - Going, Going, Gone
COBHAM GETS TAKEOVER OFFER, STARTS STRATEGIC REVIEW OF AUSTRALIAN BUSINESSwritten by Chris MilneJuly 25, 2019https://australianaviation.com.au/wp...-E190_1170.jpgA 2019 supplied image of an Embraer E190 in Cobham livery. (Cobham Aviation Services) Cobham Aviation Services Australia faces new ownership with global private equity company Advent International lobbing a takeover bid for British parent Cobham Plc. The takeover offer from Advent of 165 UK pence per Cobham Plc share valued the target at about 4 billion UK pounds. It was announced on Thursday morning (UK time), alongside the company’s financial results for the first half of calendar 2019. Cobham Plc’s board of directors recommended shareholders to vote in favour of the deal, noting the offer price represented an “attractive premium” on the share price of 123 UK pence on 24 July 2019, prior to the takeover being made public. “The Cobham directors believe that the acquisition recognises the quality of Cobham’s businesses and its prospects,” the company said in a regulatory filing. “The acquisition represents an opportunity for shareholders to realise their investment in Cobham in cash in the near term. “As a leading global private equity firm, Advent provides an experienced partner for Cobham’s customers, employees and other stakeholders.” Advent International Plc managing director Shonnel Malani said: “We strongly believe in the importance and potential of Cobham’s businesses and look forward to bringing our long track record of successful stewardship of companies to ensure that Cobham flourishes under our ownership.” Cobham said it would undertake a “strategic review” of the Australian operations of its Aviation Services business. This process, of which Advent was aware, would enable the company to decide “how best to optimise the value” of the Australian arm, Cobham Plc chief executive David Lockwood said. Advent supported the review, he added. Cobham plc said its Aviation Services business in Australia generated revenues of A$386 million in calendar 2018, with “organic revenue growth of 10 per cent in the first half of 2019”. The company’s Australian operations include the Coastwatch contract, worth more than $1 billion over 15 years; the QantasLink Boeing 717 contract, involving 20 aircraft and contracted to 2026 under a $1.2 billion contract; the Australian Maritime Safety Authority’s search and rescue contract, worth $640 million and involving four Bombardier CL-604 jets; and several fly-in/ fly-out (FIFO) contracts with mining groups. https://australianaviation.com.au/wp...amp-8_1170.jpgCobham operates four specially-modified Challenger 604s under its AMSA search and rescue contract. (Cobham) Cobham Australia chief executive Ryan Both told staff on Thursday afternoon the local operation was facing “an exciting new time”. Both said the recent arrival of an Embraer 190 for work on Chevron’s North West Shelf petroleum operation and the impending arrival of the first Dash 8 Q400 for FIFO work would help to transform the business. However, he added, the Australian arm would need more capital to drive growth “and realise our full potential”. Cobham Plc reported net profit after tax of 47.9 million UK pounds for the six months to June 30 2019, down from 166.7 million UK pounds in the prior corresponding period. Revenue rose 11 per cent to 1.03 billion UK pounds. |
Cue the private equity firm to slash as much as possible, make the company appear to be more profitable than it was when they bought it, then sell it again in about 2 years time. |
Look what happened when a private equity firm took over Dick Smith Electronics
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Cobham Aviation up for salehttps://cdn.newsapi.com.au/image/v1/...813e?width=650Cobham Aviation chief executive Ryan Both at Essendon Fields Airport. Picture: Stuart McEvoy |
Another "game-changer"! Must be looking for more QF work.
Modern aircraft, like the Q400 and the recently introduced Embraer 190, are expensive They are transforming our business but we need more capital to drive our growth so we can realise our full potential |
One thing appears certain and that is my friends who work there will be rid of that particular management team. I just hope they aren’t thrown a contract that they end up signing under desperate circumstances. |
https://www.bloomberg.com/news/artic...5-billion-deal
Opposed by their largest shareholder. This is not a done deal yet. |
Yes opposed by largest shareholder Silichester but likely they are just looking for a better deal if you read the extracts from their opposition |
Agreed topend, I think it is mostly posturing to get a better deal. The regulatory issues also have to be overcome.
Anyone remember this...https://www.theguardian.com/business...rlineindustry1 |
How does this all play out for the current pilots working there? Will there be job losses, will they still carry on with their current hiring requirements etc? A mate of mine has a 717 interview/sim session coming up in September/October (dates not confirmed yet), will they still look at bringing these guys on board?
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Crikey Daddy, you don’t want much! the paper runs a story on what MIGHT happen and you want detailed plans on what they will do with pilots! I don’t mean to be cruel but how is anyone, the least of all being the management of Cobham Australia, going to know the answer to that! it will depend on who, if anyone, buys the business, what their strategic plan is, assuming they have one (and in aviation that is a pretty big assumption) and then however long it takes to implement said mythical plan. this sort of stuff can take years to play out, and it goes without saying there are union negations to be had and all manner of consultations, so if anyone tells you what is happening, they are bull****ting you. |
Cobham future
Originally Posted by Snakecharma
(Post 10528602)
Crikey Daddy, you don’t want much! the paper runs a story on what MIGHT happen and you want detailed plans on what they will do with pilots! I don’t mean to be cruel but how is anyone, the least of all being the management of Cobham Australia, going to know the answer to that! it will depend on who, if anyone, buys the business, what their strategic plan is, assuming they have one (and in aviation that is a pretty big assumption) and then however long it takes to implement said mythical plan. this sort of stuff can take years to play out, and it goes without saying there are union negations to be had and all manner of consultations, so if anyone tells you what is happening, they are bull****ting you. |
Whoever owns the company they will need pilots, cabin crew and engineers to make the aircraft move. That much will not change. |
Seriously the sooner the better is say, get rid of management and get someone else in to run the place. |
This may be a silly question but what would happen to our surveillance contract if Cobham (Australia) was sold to say Indonesia. Would the contract continue.
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Originally Posted by harrryw
(Post 10531768)
This may be a silly question but what would happen to our surveillance contract if Cobham (Australia) was sold to say Indonesia. Would the contract continue.
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Impending announcement this week...crew very worried
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About what?
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Originally Posted by onehitwonder
(Post 10598634)
Impending announcement this week...crew very worried
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Cobham to operate A220's for Qantas contract
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