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UK defence company Cobham said it had reached an agreement to sell the company to US buyout group Advent International in a deal that valued it at £4bn.
Under the terms of the deal, Cobham shareholders would receive 165p in cash, representing a premium of 34.45 to the groups closing price of 123p on 24 July. It is a 50.35 premium to the average share price over the last three months.
The update on the deal arrived as the company reported a jump in profits in the first half of the year, though also admitted that continued operational challenges had adversely affected performance.
Pre-tax profits jumped to £98.9m for the half from £62.6m a year earlier, with revenue rising to £160m from £157m a year earlier.
'The Board's expectations for 2019 remain unchanged, although free cash flow in the year should be better than previously expected, following the first half outperformance,' the company said.
At 8:26am: (LON:COB) Cobham PLC share price was +42.6p at 165.35p