After a lengthy bidding war that has driven up the price of Signature Aviation, opponents have decided to join forces. The private equity firms Blackstone and GIP have joined forces with Cascade (Bill & Melinda Gates’ investment vehicle) to offer $4.73 billion for the business.
Last month, the private equity firm Blackstone teamed with Bill & Melinda Gates’ investment vehicle to offer $5.17 per share. GIP then topped that, offering $5.50 per share. Rather than continuing to one up each other, the two groups came together to offer $5.62, a price that Signature has recommended to its shareholders.
Should the bid be approved, Blackstone and GIP will be equal partners, each owning a 35% interest in Signature. Cascade will own 30%, which is a significant bump from its current 19% stake.
Signature Aviation was advised by J.P. Morgan Cazenove and Jefferies on the deal, who considered the terms of the deal were “Fair and Reasonable.”