COB.L - Cobham plc

LSE - LSE Delayed price. Currency in GBp
159.80
-0.70 (-0.44%)
At close: 5:06PM BST
Stock chart is not supported by your current browser
Previous close160.50
Open159.40
Bid159.60 x 0
Ask159.65 x 0
Day's range158.20 - 160.00
52-week range96.38 - 171.20
Volume19,805,644
Avg. volume10,678,152
Market cap3.821B
Beta (3Y monthly)0.70
PE ratio (TTM)N/A
EPS (TTM)-1.90
Earnings dateN/A
Forward dividend & yield0.00 (0.25%)
Ex-dividend date2019-10-10
1y target est124.20
  • Britain to investigate $5 billion U.S. takeover of defence firm Cobham
    Reuters

    Britain to investigate $5 billion U.S. takeover of defence firm Cobham

    Britain will investigate the national security impact of the purchase of defence company Cobham by U.S. private equity firm Advent International, potentially delaying or even blocking the $5 billion deal. Business minister Andrea Leadsom's move on Wednesday is not unusual where there are potential security concerns, and follows British government intervention in the pending acquisition of satellite group Inmarsat by an international private equity consortium that includes U.S. firm Warburg Pincus. Leadsom has issued a European intervention notice, calling for a report from the Competition and Markets Authority (CMA) by Oct. 29 to determine whether Cobham, the maker of air-to-air refuelling equipment, should be sold.

  • Bloomberg

    This U.S.-U.K. Defense Deal Will Be Hard to Stop

    (Bloomberg Opinion) -- The U.K. Government is right to have a closer look at the takeover of defense contractor Cobham Plc by a U.S. private equity firm. But while the company’s sale is a loss to Britain, an arbitrary block on this deal would inflict even greater damage.Boston-based Advent International is offering 4 billion pounds ($5 billion) for the company, which is the world’s biggest supplier of air-to-air refueling systems for military planes. The economics of the transaction are clear. Cobham is largely now a U.S. business by sales. Under U.S. ownership, Cobham will have an even better stab at Washington contracts. It might be easier to complete the company's turnaround under private ownership, without the short-term pressure to deliver quick wins for stock-market investors.The deal pays away a share of this value creation to shareholders in a 34% premium over where Cobham was trading a few months ago. The board thinks that’s a fair trade. The vast majority of shareholders want the deal.For the U.K., there are no obvious benefits. The only question is whether the deal does harm.The government said Wednesday it would scrutinize the national security implications of the acquisition just days after investors approved the transaction. Cobham’s sales to the U.K. military, relative to other suppliers and its own business, are small, but that’s not relevant. What matters is whether any of its businesses, regardless of their revenue, are critical to national security and would be harmed by a change of ownership.Still, if Cobham is so vital, why doesn’t the government already have a golden share that would give it de facto control? The hurdle for blocking the acquisition should be high. After all, other governments are happy to hand sensitive contracts to what to them is a foreign supplier. Melrose Industries Plc’s takeover last year of aerospace group GKN Plc provides the benchmark here. The buyer was British but the government extracted a veto on the future sale of certain assets.There are more general concerns around the loss of another U.K.-based international business in a high-tech area following the sale of chip designer ARM Holdings Plc and satellite television group Sky. Advent has an incentive to invest in Cobham. That may or may not be good for British jobs. But the head office will ultimately go, along with other expertise that serves it. Britain loses some top management talent; important decisions get made elsewhere. None of this is good for the country unless it’s part of a cycle where new domestic firms are on the rise and securing global positions in emerging industries.The reality is that Cobham’s relevance to Britain has diminished, and vice versa. The U.K.’s military spending isn’t big enough to support a sizeable homegrown industry, especially when contracts are put out to tender internationally without domestic favoritism.The government should demand remedies to any genuine security issues it sees. But a block without good reason would set a protectionist precedent, deter foreign bids, shield poor-performing managers from the threat of takeover and deprive investors of the opportunity to exit investments at premium. If the U.K. merely rues that Cobham is worth more in U.S. hands, it should instead ask whether past industrial policy is to blame and learn the lessons.To contact the author of this story: Chris Hughes at chughes89@bloomberg.netTo contact the editor responsible for this story: Stephanie Baker at stebaker@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Bloomberg

    Cobham’s $5 Billion Sale to Advent Sparks U.K. Defense Probe

    (Bloomberg) -- U.K. defense contractor Cobham Plc’s planned $5 billion takeover by Boston-based Advent International will be reviewed for its potential impact on British national security, the second high-profile private-equity deal to attract government scrutiny since July.Business Secretary Andrea Leadsom on Wednesday said competition regulators have until Oct. 29 to evaluate whether the transaction is in the public and national interest. Advent said it would cooperate with the review.The decision follows a similar move by the government to examine a planned $3.4 billion sale of satellite operator Inmarsat Plc to a group of funds. It also highlights how Brexit has depressed valuations of U.K. industrial assets and encouraged some foreign buyers to pursue deals they may previously have avoided because of regulatory hurdles.Cobham investors on Monday backed the U.S. firm’s bid with a 93% majority after critics including Lady Cobham, daughter-in-law of the company’s founder, campaigned for it to be rejected. Members of the U.K. Parliament’s Defense Select Committee had also called for the government to intervene.While Cobham is best known as the world’s biggest supplier of air-to-air refueling systems used to keep military planes airborne, the most sensitive part of the company’s portfolio concerns converted business jets deployed as simulated targets in fighter trials for the Royal Air Force, according to Sandy Morris, a defense and aerospace analyst at Jefferies International.“It’s right that the U.K. government performs this scrutiny but I don’t see anything in there that could threaten the deal and couldn’t easily be disposed of if necessary,” Morris said.Military BusinessLike Cobham, Inmarsat also has a military-related business. It helps with British border security and provides communications for the armed forces. The government accepted a pledge to keep Inmarsat’s headquarters in the U.K. and continue with research and development in the country. The satellite operator has said it expects the deal to close in the fourth quarter.The government’s probe into the Cobham deal also has parallels with scrutiny of the takeover of aerospace manufacturer GKN by investment group Melrose Plc last year, Morris said. In that case the bid was hostile and customers including Airbus SE had expressed concerns about the transaction, he added. The deal was still cleared.Read more: GKN Loses Fight Against Melrose’s $11 Billion Hostile Offer (2)Cobham shares traded 0.5% lower at 159.70 pence as of 11:52 a.m. in London. The agreed takeover by Advent is worth 165 pence a share in cash.It’s rare for Britain to block deals on national security grounds, and the timing is delicate as Prime Minister Boris Johnson promises a quick free-trade deal with the U.S. as he seeks to push through Brexit. The U.S. in turn wants the U.K. to block Huawei Technologies Co. equipment from new 5G mobile networks, threatening to withhold intelligence sharing.Cobham Chief Executive Officer David Lockwood told reporters on Monday that the company will be able to leverage Advent’s U.S. ties to pick up contracts across the Atlantic.For its part, the private-equity firm said Wednesday it’s “committed to being a responsible steward of Cobham, encouraging its future growth and success.”(Updates with details on Inmarsat review in second paragraph.)\--With assistance from Flavia Krause-Jackson and Thomas Pfeiffer.To contact the reporter on this story: Andrew Noël in London at anoel@bloomberg.netTo contact the editors responsible for this story: Tara Patel at tpatel2@bloomberg.net, Christopher JasperFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters - UK Focus

    UPDATE 1-FTSE 100 lingers in the red ahead of Fed meeting

    London's main index see-sawed in early Wednesday trading as investors awaited the outcome of the U.S. Federal Reserve meeting to get a sense of how far policymakers in the world's largest economy will go to tackle a global slowdown. The Federal Reserve is set to conclude its latest policy meeting later in the session, with expectations that it will cut interest rates for the second time this year as it looks to cushion the economy from an ongoing trade war with China. "The question facing the market is how many more (rate cuts) there are to come," Markets.com analyst Neil Wilson wrote.

  • UK government opens national security investigation into £4bn defence deal
    Yahoo Finance UK

    UK government opens national security investigation into £4bn defence deal

    Business secretary Andrea Leadsom announced the investigation of Advent's takeover of Cobham on Wednesday.

  • Reuters - UK Focus

    UPDATE 2-Britain to investigate $5 bln U.S. takeover of defence firm Cobham

    Britain will investigate the national security impact of the purchase of defence company Cobham by U.S. private equity firm Advent International, potentially delaying or even blocking the $5 billion deal. Business minister Andrea Leadsom's move on Wednesday is not unusual where there are potential security concerns and follows British government intervention in the pending acquisition of satellite group Inmarsat, by an international private equity consortium which includes U.S. firm Warburg Pincus. Leadsom has issued a European intervention notice, calling for a report from the Competition and Markets Authority (CMA) by Oct. 29 to determine whether Cobham, the maker of air-to-air refuelling equipment, should be sold.

  • Reuters - UK Focus

    LIVE MARKETS-EU banks: vicious circle with negative rates

    * European shares fall slightly, STOXX 600 down 0.2% * Defensive stocks outperform: healthcare, food & bev, utilities top risers * STOXX 600 slipped from 6-week high on Monday * Oil slightly lower after massive jump on Saudi attacks on Monday * Wall Street futures flat Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Reach him on Messenger to share your thoughts on market moves: rm://danilo.masoni.thomsonreuters.com@reuters.net EU BANKS: VICIOUS CIRCLE WITH NEGATIVE RATES (1158 GMT) Five years on and no respite for euro-zone banks from negative interest rates and future looks no better with more rate cuts on the horizon.

  • Reuters - UK Focus

    LIVE MARKETS-UK industrials ripe for M&A

    * European shares fall slightly, STOXX 600 down 0.2% * STOXX 600 fell 0.7% from 6-week high on Monday * Oil slightly lower after massive jump on Saudi attacks on Monday Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Reach him on Messenger to share your thoughts on market moves: rm://danilo.masoni.thomsonreuters.com@reuters.net UK INDUSTRIALS RIPE FOR M&A (0958 GMT) With sterling slowly recovering from multi-year lows, it could likely be one of the last opportunities for foreign buyers to snap up some UK companies at cheap prices and Berenberg believes the industrials sector is probably the next one to see a wave of M&A activity. Within industrials, Berenberg says automotive, distribution and paper, plastic and packaging are the most likely ones to consolidate.

  • U.S. group Advent wins $5 billion battle for Britain's Cobham
    Reuters

    U.S. group Advent wins $5 billion battle for Britain's Cobham

    U.S. private equity firm Advent International won its battle to buy Britain's Cobham for $5 billion on Monday, taking advantage of the weak pound to pounce on the defence and aerospace group that pioneered air-to-air refuelling. Chairman Jamie Pike told a shareholder meeting the management had "pushed as hard as they could push" and engaged in some "arm wrestling" before finally settling on a price that marked a 50% premium to the three-month average share price before the deal was announced. Cobham, based in Wimborne Minster, south-west England, is the latest European company to be bought by a private equity firm seeking a home for their bumper cash balances.

  • Reuters - UK Focus

    UPDATE 2-U.S. group Advent wins $5 bln battle for Britain's Cobham

    U.S. private equity firm Advent International won its battle to buy Britain's Cobham for $5 billion on Monday, taking advantage of the weak pound to pounce on the defence and aerospace group. Chairman Jamie Pike told a shareholder meeting the management had "pushed as hard as they could push" and engaged in some "arm wrestling" before finally settling on a price that marked a 50% premium to the three-month average share price before the deal was announced. Cobham, which employs 10,000 people to make its pioneering air-to-air refuelling system and communications for military vehicles, has a storied history but has faced difficulties in recent years.

  • Reuters - UK Focus

    UPDATE 1-Advent takeover deal for Cobham backed by most shareholders -FT

    U.S. private equity firm Advent International is set to clinch its 4 billion pound ($4.99 billion) takeover of defence and aerospace group Cobham Plc after Advent received support from more than 75% of shareholders, the Financial Times reported on Friday. Advent agreed to pay 4 billion pounds to buy the British defence and aerospace group known for its pioneering air-to-air refuelling technology in July. Advent offered 165 pence in cash for each Cobham share representing a 50% premium to the three-month average price at that time.

  • Reuters

    Advent takeover deal for Cobham backed by most shareholders - FT

    The tally is based on the number of proxy votes already cast ahead of a crucial shareholder vote on Monday, the FT reported, citing people familiar with the situation. Advent agreed to pay 4 billion pounds to buy the British defence and aerospace group known for its pioneering air-to-air refuelling technology in July. Advent offered 165 pence in cash for each Cobham share representing a 50% premium to the three-month average price at that time.

  • Cobham Holders Poised to Approve $5 Billion Advent Takeover
    Bloomberg

    Cobham Holders Poised to Approve $5 Billion Advent Takeover

    (Bloomberg) -- Cobham Plc shareholders are poised to approve Advent International’s proposed 4 billion-pound ($5 billion) takeover of the U.K. defense and aerospace company, people with knowledge of the matter said.The private equity firm has received acceptances from more than 75% of shareholders who have voted so far, the people said, asking not to be identified because the information is private. The preliminary tally is based on proxy votes sent in by the Sept. 12 deadline, according to the people.Advent won over Cobham shareholders after influential proxy advisory firms Institutional Shareholder Services Inc. and Glass Lewis & Co. recommended investors vote in favor of the deal. The takeover had faced opposition from some funds including Silchester International Investors LLP, which owns 12% of Cobham and said last month the company could fetch a higher price than what Advent was offering.The total percentage of shareholders in favor of the deal will only be known after a shareholder vote Sept. 16. Most major fund managers send in their votes ahead of time by proxy, though the formal shareholder meeting will also take into account individual investors who cast their votes in person.Representatives for Advent and Cobham declined to comment.Shares of Cobham rose 2.2% to 159.75 pence at the close Friday in London. That is 3.2% below Advent’s offer of 165 pence per share in cash. The transaction requires regulatory approvals in the U.S., the European Union, U.K., Australia, France and Finland, Advent said in July when the deal was announced. The private equity firm expects to close the acquisition by the end of the year.Cobham traces its roots to the 1930s and has about 11,500 employees globally. The firm makes in-flight refueling systems, communications gear and specialized equipment for aircraft and ships. Customers include Airbus and Boeing Co.To contact the reporters on this story: David Hellier in London at dhellier@bloomberg.net;Sarah Syed in London at ssyed35@bloomberg.net;Dinesh Nair in London at dnair5@bloomberg.netTo contact the editors responsible for this story: Aaron Kirchfeld at akirchfeld@bloomberg.net, Ben Scent, Amy ThomsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters - UK Focus

    RPT-Foreign trophy hunters scent bargains in Britain as pound weakens

    Private equity and foreign investors, including Hong Kong's richest man, have swooped on pub operators, brewers and some of Britain's most popular tourist attractions, as the pound has slipped. Hong Kong Exchanges and Clearing's $39 billion approach for the London Stock Exchange on Wednesday is the latest in a flurry of dealmaking, although acquirers have mainly targeted small- and mid-cap companies that make most of their revenue in sectors that have been hammered by Brexit.

  • Cobham Advanced Electronic Solutions to Support Astranis in Mission to Bring Widespread Internet Connectivity to Alaska
    Business Wire

    Cobham Advanced Electronic Solutions to Support Astranis in Mission to Bring Widespread Internet Connectivity to Alaska

    -Astranis Geostationary Satellite to Feature Cobham LeanREL™ Electronics

  • Hong Kong Billionaire Bets on a Brexit Certainty
    Bloomberg

    Hong Kong Billionaire Bets on a Brexit Certainty

    (Bloomberg Opinion) -- The 2.7 billion-pound ($3.3 billion) offer for Greene King Plc from an investment group backed by Hong Kong billionaire Li Ka-shing is a sign one thing is certain whatever the outcome of Brexit: Brits will keep drinking beer and eating pies.Greene King isn’t an international business pretending to be a U.K. company like Arm Holdings Plc, Inmarsat Plc, Cobham Plc or even Merlin Entertainments Plc – all of which generate most of their revenue from overseas and have received takeover offers since the referendum in 2016. The pub chain’s revenue is 100% in pounds.Yet its attractions are plain to see. The U.K. pubs industry has shed capacity in recent years. The survivors have adapted by offering food and making pubs more family friendly. Contrast that with the casual dining industry, where pizza chains in particular have proliferated and poisoned returns. Greene King owns most of its 2,700 sites. That will provide some comfort to CK Asset Holdings Ltd., which is more accustomed to investing in solid U.K. rail, water and real estate assets.The timing is telling. Greene King was more affordable last year when its shares hit their lowest since 2011. But back then its board might have been less amenable to a deal. Since then, the pound has continued to slide.CK’s offer, pitched at a 51% premium to where the stock was trading just before the bid, gives investors a price they haven’t seen since the Brexit vote at a time when U.K. stocks are deeply unpopular with international money managers. That high top-up may assuage fears management rushed to back a deal that is likely to see them stay in their posts.It may seem like a small, bullish sign for U.K. equities. The reality, though, is there are few companies that share Greene King’s characteristics.To contact the author of this story: Chris Hughes at chughes89@bloomberg.netTo contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Reuters

    Cobham's biggest shareholder says Advent offer for company not 'compelling'

    The biggest investor in defence company Cobham , Silchester International Investors, said late Thursday that it did not consider a $5 billion offer for the company from private equity firm Advent International as 'compelling'. Silchester, which owns 11.8% of Cobham, said the company had a strong balance sheet that could be improved further, possibly through the sale of its Australian business. The London-based fund also called on Cobham's board to "seek and respond" to other potential bidders, and suggested the company would have strategic value to a buyer with significant North American interests.

  • Reuters - UK Focus

    LIVE MARKETS-Closing snapshot: Mario giveth and then he taketh away

    * European stocks end sharply lower after rollercoaster day * ECB signals rate cut in September, more QE, triggering brief rally * Stock gains wiped out after ECB's Draghi quashes talk of rate cut today * EZ banks briefly rallied on tiered rate hopes, but gains evaporated * German business morale deteriorates * CAC 40 outperformed broader market on solid updates from LVMH, Schneider Electric * Nokia rose 7% after surprise Q2 profit jump * Cobham +35% after Advent agrees to buy for $5 billion Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: rm://thyagaraju.adinarayan.thomsonreuters.com@reuters.net CLOSING SNAPSHOT: MARIO GIVETH AND THEN HE TAKETH AWAY (1558 GMT) The ECB's bank's policy statement delivered much of what the market had expected, signalling a September rate cut, changes to inflation targets, more QE and a gift to banks with possible tiered deposit rates and the ensuing euphoria sent euro-zone stocks rallying, led by banks.

  • Cobham to be bought in £4bn acquisition, where would I invest my gains?
    Fool.co.uk

    Cobham to be bought in £4bn acquisition, where would I invest my gains?

    British defence firm Cobham Plc (LON:COB) is to be acquired by a US private equity firm, so where could your defence investment money go next?

  • Cobham plc (LON:COB): Poised For Long Term Success?
    Simply Wall St.

    Cobham plc (LON:COB): Poised For Long Term Success?

    Based on Cobham plc's (LON:COB) earnings update in December 2018, analyst consensus outlook appear cautiously...

  • Reuters - UK Focus

    LIVE MARKETS-Now Mario, give us the details

    * European stocks rise after ECB signals potential rate cuts * EZ banks rally on tiered rate hopes * German business morale deteriorates * Cars go into reverse after Nissan news * CAC 40 outperforms on solid updates from LVMH, Schneider Electric * Nokia rises 7% after surprise Q2 profit jump * Cobham +35% after Advent agrees to buy for $5 billion Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: rm://thyagaraju.adinarayan.thomsonreuters.com@reuters.net NOW MARIO, GIVE US THE DETAILS (1237 GMT) It looks that the ECB statement didn't disappoint anyone, sending euro-zone shares shooting higher across the board, as the euro took a turn lower.

  • Reuters - UK Focus

    LIVE MARKETS-Mario delivers!

    * European stocks rise after ECB signals potential rate cuts * EZ banks rally * German business morale deteriorates * Cars go into reverse after Nissan news * CAC 40 outperforms on solid updates from LVMH, Schneider Electric * Nokia rises 7% after surprise Q2 profit jump * Cobham +35% after Advent agrees to buy for $5 billion Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Thyagaraju Adinarayan. Reach him on Messenger to share your thoughts on market moves: rm://thyagaraju.adinarayan.thomsonreuters.com@reuters.net MARIO DELIVERS! (1220 GMT) Markets have spiked higher after the ECB kept rates unchanged as expected, but opened the door to future rate cuts and more bond buys, while also providing some respite to the banks with a possible tiered deposit rate.

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