EchoStar confirmed the bid and said it will continue to find common ground with Inmarsat, with a view towards buying the company. It believes a combination of EchoStar and Inmarsat is "strategically compelling." The combined group would be one of the world's leading satellite providers and be well supported by a global portfolio of complementary assets and service offerings.
EchoStar said that under the improved proposal, Inmarsat would receive GBP 0.265 per share in cash plus 0.0777 new shares in EchoStar per class A Inmarsat share. Based on the closing price of EchoStar shares on 5 July of USD 45.45, the offer values the company’s issued share capital at USD 2.45 billion. Including convertible bonds, the bid values the company at GBP 3.2 billion. This means that holders of Inmarsat 3.875 percent convertible bonds due 2023 would be entitled to receive a value equivalent to around USD 296,225 in cash and shares.
The deal represents a premium of 46 percent to the closing price per Inmarsat share, and a premium of 42 percent to the closing price of per convertible bond on 30 May, the last day before EchoStar's initial approach. For the closing price at end 7 June, the bid represents a premium of 27 percent per share and of 39 percent per convertible bond. For the three months to end 7 June, the offer represents a premium of 40 percent to the volume weighted average closing price per Inmarsat share.
The improved offer would also extend to any Inmarsat shares unconditionally allotted on conversion of the convertible bonds before the acquisition closing date. In total, the offer for convertible bonds would result in a maximum equivalent value of USD 962.7 million payable to holders.
