Minister pressured to thwart private equity acquisition of defense group Ultraelectronics: Sir Hazeltine accuses Advent of £ 2.6bn bid
- Hazeltine accuses business secretary Kwasi Quarten of “abandoning industrial strategy”
- Ultra Electronics provides sensitive electrical engineering and software services to the military, including the Royal Navy.
- Advent offered an offer of 3500p per share through Cobham. Ultra’s board of directors has stated that it “willing to recommend” bids to shareholders.
Ministers are under pressure to thwart the defense group’s acquisition of Ultra Electronics’ private equity.
Former Defense Minister Sir Hazeltine has accused a £ 2.6 billion bid from US bidder Advent International, who is acting through another British military supplier, Kobam, who bought in a fiercely contested deal last year.
Tory Grande has accused Secretary-General Kwasi Kwaten of “abandoning industrial strategy” and called for a rigorous check before the deal is approved. Heseltine, a successful businessman who served under Margaret Thatcher and John Major, said:
Problematic waters: Ultra Electronics provides sensitive electrical and software services to the military, including the Royal Navy.
“This is another example of the idea that everything is for sale in this country. Other countries do not behave this way.
“The Executive Secretary has abandoned the UK’s industrial strategy. I think that transactions involving major companies, like the United States, require a complete scrutiny process.”
Ultra Electronics provides sensitive electrical engineering and software services to the military, including the Royal Navy. The maritime system is used to patrol British waters, hunt submarines and protect aircraft carriers.
Advent has offered an offer of 3500p per share through Cobham. And Ultra’s board says it “willing to recommend” bids to shareholders. Ultra Chairman Tony Rice and CEO Simon Pryce will win approximately £ 700,000 and £ 770,000 in their shares, respectively.
Hazeltine said bidders planning to buy companies operating in any of the 17 major sectors must notify the government starting next year under the new National Security Investment Act. rice field. Ministers will improve their ability to scrutinize, intervene and even thwart trades as the government praises it as “the biggest shake in Britain’s national security system in 20 years.”
However, the law will only come into effect in January next year, at which point Ultra’s fate may have already been sealed.
The government said it was “closely monitoring transactions,” but said it was a “commercial problem for the companies involved.”
Hazel Tyne is the latest in a series of celebrities who criticize the Ultra contract. Another former Defense Minister, Sir Gerald Howarth, said the acquisition would have to go “at the center of Britain’s defense capabilities” and face close scrutiny from the government.
Advent was already rippling with the acquisition of Kobam. Since the closing of the deal in January last year, there are concerns that many businesses have been sold to overseas buyers and the group has been rapidly dismantled, leaving important know-how in the UK.
A Kobam spokesman said: “We have provided a guarantee that a proper national security project will be provided to the UK Government.
Ministers under pressure to thwart Ultra’s private equity acquisition
Source link Ministers under pressure to thwart Ultra’s private equity acquisition