Avanti Communications Share Discussion Threads

[dice1950] 04/8/2016 11:25

Inmarsat bid five times Avanti Comms’ market cap before withdrawing last month
Paul Murphy Author alerts
| Aug 04 10:50 | Comment | Share
Yes, really. On Wednesday last week Patrick McDougal, Inmarsat’s head of business development and strategy, got in touch with Dominic Lester, joint head of investment banking in Europe at Jefferies & Co, Avanti’s advisory.

He wanted to table a second takeover offer for Avanti from Inmarsat, after a previous low-ball bid for the rival satellite operator had been rejected. Inmarsat was ready to pay at least 140p a share in cash for Avanti, subject to due diligence. At the time, shares in Avanti were trading just below 30p.

This sits a little awkwardly with Inmarsat’s formal statement on the matter, issued on Monday this week, which stated:

Inmarsat (LSE: ISAT.L) notes the recent press speculation regarding Avanti Communications Group plc (“Avanti”;). Inmarsat confirms that it was contacted by Avanti’s advisers following the announcement by that company of a strategic review and formal sale process on 11 July 2016, and responded to that contact. Inmarsat confirms it has withdrawn from Avanti’s announced process and it is not considering an offer for the shares of Avanti.

That was in reaction to a Mark Kleinman story at Sky News, first revealing Inmarsat’s interest. The statement seemed to imply that Inmarsat were offered the chance to purchase their rival early in July, but quickly declined the invitation. In fact, right up to the end of the month, Inmarsat were making proposals that included keeping the existing Avanti management team intact, maintaining its business development plan and incentivising the executive team accordingly.

No matter. Monday’s statement locks Inmarsat out of a fresh bid now, although it could return if and when Avanti attracts an alternative offer.

With its stock price having cratered over the past nine months, and facing a cash crunch, Avanti has been in open crisis since admitting on July 7th that it needed to raise $50m in fresh equity. It subsequently launched a strategic review, saying it was ready to consider takeover offers.

After the collapse of the Inmarsat talks, Avanti is thought to be in detailed discussions with two other potential acquirers. But it also has the backing of MAST Capital Management, the Boston-based investor which is a substantial Avanti bondholder, as well as holding a 10 per cent equity stake.

Meanwhile, Inmarsat on Thursday unveiled first half figures that were broadly in line with market expectations, reiterating its previous warning that the outlook remained difficult to predict.

[dice1950] 04/8/2016 11:21

Avanti Comms’ (AVN) ISAT = ready to pay at least 140p a share in cash
4th August 2016

[gerryjames] 04/8/2016 11:13

That's a lot of upside...sense an RNS may be required.

[top_banana1] 04/8/2016 11:09

Deary me !!!

[tonysss13] 04/8/2016 11:06

ISAT were willing to pay 140p wow

[alchemy30] 04/8/2016 10:55

Pretty mental if true -

[dice1950] 04/8/2016 09:43

World Vision International Talks Satellite for Humanitarian Work

By Caleb Henry | July 5, 2016

[dice1950] 04/8/2016 07:08

David Williams, Avanti Chief Executive, said: “We are delighted to have found in Inmarsat a safe pair of hands to entrust the operation of HYLAS to. We also believe that in extending our existing relationship with Inmarsat, there are other opportunities that we will pursue together.”

Andrew Sukawaty, Chairman and CEO of Inmarsat, said: "Avanti is implementing one of the UK’s most innovative space projects. We intend to work closely with them and are excited about participating in this venture. Operating the HYLAS satellite is an unique opportunity to leverage our expertise and infrastructure and are looking forward to a long and fruitful partnership between our two companies."

Inmarsat awarded US Navy Satellite Contract
RNS Number : 1978G
Inmarsat PLC
04 August 2016



INMARSAT GOVERNMENT AWARDED U.S. NAVY SATELLITE SERVICES CONTRACT



Services under contract enable worldwide satellite communications between U.S. Navy's global fleet of shipboard terminals and shore-based telecommunication network



4 August 2016: Inmarsat, the leading provider of global mobile satellite communications services, is pleased to announce that its wholly-owned subsidiary, Inmarsat Government, has been issued modification P00001 to lift the stop-work order issued due to a bid protest filed on the initial award. Inmarsat Government remains the awardee on the single award indefinite-delivery/indefinite-quantity contract issued against solicitation HC1013-14-R-0004 announced Sept. 8, 2015. This contract supports the U.S Navy's Commercial Broadband Satellite Program (CBSP) Satellite Services Contract (CSSC). The single award consists of a base one-year period with four one-year option periods through 2021.



Under the contract, Inmarsat Government will support the U.S. Navy's requirement to acquire worldwide commercial telecommunication services, to include satellite capacity for mobile and fixed satellite transceivers on maritime, airborne and ground platforms, as well as CT services, backhaul connectivity, monitoring and control and operations. CSSC will augment government-owned and operated telecommunication systems, providing significant improvement in data throughput and capacity redundancy to military satellite communications to meet critical mission requirements.



"We understand that information dominance must be maintained in support of the service men and women; winning this contract demonstrates the U.S. government's trust in Inmarsat Government's ability to deliver flexible solutions that meet the Navy's specific mission-critical communication requirements cost-effectively," said Susan Miller, Inmarsat Government President and Chief Executive Officer.







"Inmarsat Government will deliver robust and globally accessible satellite capability that can augment military satellite systems when needed, while providing the protection, resiliency and worldwide portability for military operations without service interruption," said Gabe Venturi, Inmarsat Government Chief Commercial Officer.

[wiseacre] 03/8/2016 10:20

Thyme is not on our side!

[bwakem] 02/8/2016 14:45

"Williams thought the debt levels were well within safe limits" - weatherman

If he thinks having to borrow money just to pay the interest on existing debt is within safe limits, then he is certifiable. That's like using your credit card to make payments on an interest-only mortgage.

[elrico] 02/8/2016 14:41

Keep up dice...Inmarasat were never in discussions, AVN approached Inmarasat, AVN were dismissed out of hand.

[dice1950] 02/8/2016 14:25

#AVN / Avanti Communications Inmarsat declined to confirm whether it had also withdrawn from discussions

[dice1950] 02/8/2016 14:25

#AVN / Avanti Communications Inmarsat declined to confirm whether it had also withdrawn from discussions

[weatherman] 02/8/2016 14:13

Shorting is like a guy who borrows his neighbours car, enters it into a street race and crashes it into a wall after collecting the winnings. Then hands the keys back to the owner and says 'not me guv - it wasn't my fault', and the car was rubbish anyway because its front end is smashed in.

[loglorry1] 02/8/2016 13:59

weatherman it has nothing to do with people taking short positions in the secondary market for stock. Avanti's business plan has failed because it has been badly run or it was an invalid plan in the first place. Directors loaded up the company with expensive debt not folk with a short position in the stock.

[weatherman] 02/8/2016 13:41

I do think that AVN have been a bit complacent in assessing the risk of all that debt, especially when shorters can destroy the ability of a company to use its equity to pay down debt. Williams thought the debt levels were well within safe limits, but as we have seen debt to equity levels can rocket when the share price crashes. Bankers don't always understand the selfishness, short-termism, and cynicism of the market.

Still the shorters have been opportunistic and manipulative in destroying AVN. Revenue has risen more slowly than hoped, but still more than 40% per year over 5 years - which some of us would see as reasonably good. As an AVN investor I would have been willing to stump up more cash a year ago when the price was 200p to pay the bonds, but now it is questionable.

We don't know how news of Inmarsat was released to Sky. The news story seems to have forced a rapid denial, which makes me think Williams was not the source.

[dice1950] 02/8/2016 13:17

Avanti Communications (#AVN) Directors Holding Stock Tight - … -

[dice1950] 02/8/2016 13:16

Avanti Communications (#AVN) Directors Holding Stock Tight - … -

[elrico] 02/8/2016 12:27

Wow, SKY don't have a monopoly on lazy journo's willing to run with a fabricated story, question is...who planted the lie? Uhm, let me think on it for a while!!

[elrico] 02/8/2016 12:20

Why am I NOT surprised director talk are once again ramping this dog, you would have thought it would be a little more careful after sucking its readers in last time at much higher price. Oh yeah of course, you takes your money and sod your public. How much are you being paid dice1950?