Inmarsat Dividends - ISAT

Inmarsat Dividends - ISAT

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Inmarsat Plc ISAT London Ordinary Share GB00B09LSH68 ORD EUR0.0005
  Price Change Price Change % Stock Price Last Trade
0.00 0.0% 544.40 01:00:00
Close Price Low Price High Price Open Price Previous Close
544.40 544.40
more quote information »
Industry Sector

Inmarsat ISAT Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

steeplejack: I see that Cobham makes the Sundays with the family objecting to the opportunistic bid by private capital outfit Advent.Hopefully,this will open up a debate about what’s going on.Admittedly,Inmarsat didn’t call repeatedly on shareholders to provide emergency funding.However,ISAT did display a facile misunderstanding of its cash flow requirements as it struggled to balance competitive pressures in shipping whist trying to develop flight broadband.It was forced to do a volte face with an overly generous dividend policy which(along with over generous remuneration packages)contributed in part to a depressed share price that left it vulnerable to an opportunist bid approach.I find it extraordinary that institutional shareholders voted in favour of the bid for Inmarsat at this knock down price. As Bloomberg commented back in March,”Private equity offers can be appealing to managers of target companies as they can include financial incentives and give executives the opportunity to keep running the company”. Apax treated an undeserving ISAT management to windfalls when it floated the company in 2005 and has probably promised further treats after the planned delisting which will occur 15 years later.ISATs 15 year operational performance during the listing period has been mediocre at best but management have been handsomely rewarded from the outset.Beggars belief. 16 July FT ... “Competition watchdog to probe $6bn Inmarsat private buyout” Bit late methinks but who knows.
dexdringle: Unless they thought there was a counter bid coming, given that the share price is about equal to the offer price, why would anyone buy these now ?
wad collector: I think the recent share price tending to £5.40 makes clear that this is a done deal.
steeplejack: The company is clearly facing a cash flow problem.The management appear to lack business acumen in that they unwittingly paid dividends that they simply couldn't afford and then cut them dramatically in a damascene experience.The feeling seems to be that Echostar (and others)are not in a position to counter the PE bid.The share price is not overly optimistic.As for Inmarsat management,they're happy to learn that their HQ will remain in the UK and that there won't be a widespread redundancy programme.One should bear in mind that Inmarsat management are far from popular with shareholders.Last year,they had to change their overly generous remuneration in response to shareholder pressure.Private ownership might be a bit of a godsend for a rather incompetent but avaricious crew but shareholders might have one more surprise for the management.
steeplejack: You're right.Sadly,the management are sitting tenants of sorts.The failure of management has reduced the share price to a level that attracts an opportunist bid at a level dismissed as ridiculous when Echostar made its approach.All you can hope is,that Echostar might counter.However,I imagine that the UK Government might quite like ISAT becoming private and slipping out of public view.This Deal has probably been given a nod and a wink.
steeplejack: Below are extracts from FT Alphaville today.I’ve tried to make the blog as readable as possible.Lengthy but worth scanning. Inmarsat PLC (ISAT:LSE): Last: 516.60, up 78.8 (+18.00%), High: 516.80, Low: 500.76, Volume: 11.77m Seems this was the UK takeover that's been muttered about for a while now, so everyone can stand down. Course, if Inmarsat had told us about it six weeks ago when the approach arrived, there wouldn't have been quite so much gossip around ...... And there was speculation around in the press -- -- just that it was pointed towards trade rather than PE. Anyway. Let's recap where we are. I'll let Goldman do it ..... Following press reports (FT) about a potential PE offer, Inmarsat has confirmed it received a non-binding proposal from a PE consortium on 31 January regarding a possible cash offer at $7.21 (equates to 542p at 1.33 FX), a c24% premium to March 19 closing share price (438p). We note the PE consortium now has until 16 April to make a firm offer. ISAT notes the proposal remains under discussion between ISAT and the PE consortium. Among the bid consortium, Apax is the most interesting name. Firstly because Apax used to own Inmarsat. Secondly, because its owns Marlink, which sells Inmarsat satphones for boats. It's one of the key distributors. Which makes this look relatively friendly, potentially. Which is a point Exane makes...... We think Inmarsat's management is likely to favour a takeprivate bid (vs. a take-over scenario) especially if it comes with the strategic benefit of closer integration with Marlink. Course, against that we have to spin back to the robust rejection Echostar was given just eight months ago. Its bid being 532p, of which 265p was cash, so basically no different in terms of headline valuation to the PE one. Roidster One just raised may come in ...thoughts? "If you engage at a level that's way below what you think is the right level, all you're doing is signaling weakness and a willingness to trade value below fair value"; "And after all, we're not for sale. We don't feel weak about our future and we don't feel the need to engage in a merger even with somebody in our industry at this point in time. We don't think that will drive exceptional value for shareholders beyond the value they've paid on the way into that kind of environment. So, that's why we did not engage". That was Inmarsat's CEO in August. Next, we have to examine the conspiracy theory angle. Here's Jefferies: The decision to unilaterally disclose the Consortium's six-week-old non-binding cash bid, almost identical in value to the rejected 3-Jul-18 EchoStar bid, feels like a well-advised "stalking horse" that could well now result in a revised bid (from either suitor). Except it wasn't unilaterally disclosed. It was in response to a specific report, so that doesn't quite work. And to follow that, we need to get knee deep in the binary value around Ligado (the former Lightsquared, messes with GPS, you remember) and strategic value to Charlie Ergen .....
badger60: zcaprd7ISAT will soon be on a share price parity with AVN at this rate..... ;+(
the original goldbug: The board ‘remains confident’ despite the fact the shareprice is £1 below what they termed a deeply opportunistic bid. I haven’t come to grips with why the share price is getting smashed today, but these people really are the worst example of UK corporate mediocrity.
dexdringle: Why do people assume there is a direct correlation between dividend and share price here ? Maybe in a mature, predictable (boring ?) business which exists to pay dividends (eg Marks & Spencer, National Grid, GSK) and where people buy them for the dividend yield. But Inmarsat ? What is the dividend yield on Tesla ? Or Netflix ? Just Eat has a market cap over £5bn and no yield whatsoever.
steeplejack: Share buy backs have historically proved ineffectual at shoring up a weakening share price for any length of time.On paper,share buy backs are returning capital to shareholders but that's all rather theoretical,it can all get lost in a day's price movement.This company needs to decide whether it's overpaying on the dividend.It's clearly absurd that ISAT is yielding some double the RPI and the market is suggesting it won't last.It's suggesting that the company could slash the dividend and that such a possibility is well discounted.I would like ISAT to cut the final dividend by a third in March at the very least.It would show that you don't have to pander to income hungry investors.Grow the business with your cash flow..Check out Indivior over the last year (who did away with dividend payments sometime ago)or look at HCM who don't pay a dividend at all.Hasn't really hurt their cause has it.This bond proxy investment approach might be diminished by a continued rise in US interest rates.
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