Cobham Shareholders Approve $5 Billion Takeover by Advent

(Bloomberg) -- Cobham Plc shareholders approved a 4 billion-pound ($5 billion) takeover, placing the future of the U.K. defense and aerospace company in the hands of private equity firm Advent International.

The buyout firm’s offer received 93.1% support, based on an initial count of proxy votes sent in ahead of an investor meeting in London today. Cobham shares rose 0.9% to 161.25 pence at 11:19 a.m. Monday. That compares with Advent’s offer of 165 pence per share in cash.

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.

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.

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.

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.net

To contact the editors responsible for this story: Aaron Kirchfeld at akirchfeld@bloomberg.net, Ben Scent, Neil Callanan

©2019 Bloomberg L.P.