IMASF - Inmarsat: Latest Offer Undervalues The Company
The latest offer for Inmarsat (IMASF) comes from a PE consortium (Triton bidco, consisting of Apax Partners, Warburg Pincus, and Canada Pension Plan Investment Board). While the offer may seem attractive due to its all-cash nature ($7.09 cash/share plus dividend, bringing the total offer to $7.21/ share), we think the offer undervalues Inmarsat's growth prospects especially in light of the recent 4Q18 report and Ligado’s contribution.
At current prices, the Triton bid implies a take-out multiple of 7.9x forward EV/EBITDA on depressed FY19 consensus earnings as the company is heading into an investment