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Signature Aviation Shares Surge 41.7% on Blackstone’s $5.17 Takeover Offer

Nigel Firth
Nigel Frith trader
Updated 17 Dec 2020

Practice Stock Trading
Signature Aviation logo

Shares of Signature Aviation PLC (LON: SIG) today surged 41.7% after the company confirmed that it is in talks with US private equity firm Blackstone Group about a potential cash offer of $5.17 (£3.80)a share for the company.

The aviation company which claims to be the largest fixed base operation (FBO) network for Business & General Aviation (B&GA) travellers said that it had also received an indicative proposal from Global Infrastructure Partners (GIP) regarding a possible cash offer.

However, Signature’s board of directors rejected the offer, which had quotes a lower price than Blackstone’s.

Signature clarified that: “A further announcement will be made as and when appropriate. There can be no certainty that any offer will be made nor as to the terms of any offer,”

The aviation services company looks cheap at current prices due to the impact of the coronavirus pandemic and Brexit making the firm a natural target for private equity firms looking for deals in the UK.

The company is well-positioned to benefit from an expected rebound in air travel next year.

Signature Aviation share price

Tradingview chart of Signature Aviation share price 17122020

Signature Aviation shares today surged 41.7% to trade at 380p having rallied from Wednesday’s closing price of 268p.

Nigel Firth
Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.