Ultra Electronics shares rose after Kwasi Kwarteng approved his sale to US private equity firm Advent International
Ultra Electronics Stocks rose after Economy Minister Kwasi Kwarteng waved through the sale to US private equity firm Advent International.
Despite resistance, the British defense group is to be bought by the Advent subsidiary Cobham for £2.6 billion.
Kmacheng was urged to block the takeover for fear of an erosion of Britain’s defense sector.
Start: Shares in Ultra, which makes anti-submarine warfare equipment, rose 12.3 percent or 378 pence to 3448 pence
But Advent has made legally binding commitments to protect national security, and Kwarteng said he’s ready to accept the takeover.
Ultra, which makes anti-submarine warfare gear, was up 12.3 percent or 378 pence at 3448 pence.
They had been hovering below the £35 per share offer price. The pledges include the creation of two companies covering Ultra’s most sensitive work in the UK, each with a nationally recognized board member.
Ministers will have “strong entry rights” allowing the government to secure any future transfer of ownership.
Some MPs were furious, with former Tory leader Sir Iain Duncan Smith saying he “can’t understand” why it wasn’t blocked.
Ultra Shares Rocket After Kwasi Kwarteng Clearance Approval
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