Ultra Electronics (LSE:ULE) Holdings PLC confirmed it received a non-binding takeover approach from aerospace group Cobham Limited on July 21, valuing the company at just under £2.6bn.
The defence and security engineering group said Cobham is offering shareholders 3,500p per share in cash, adding investors will also be entitled to an interim dividend of 16.2p per share which was announced by Ultra on July 19.
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Ultra said the offer price coupled with the interim dividend represents a total proposal of 3,516p per share, a 42% premium to the company’s closing price on Thursday.
The firm said its board is “minded to recommend” the offer to shareholders and that it will engage in discussions with Cobham to explore the proposal in further detail.
As a result, Ultra said it has agreed an extension to the ‘put up or shut up’ (PUSU) deadline under takeover rules to 5pm on August 20.
The proposal marks the latest attempt by Cobham to entice Ultra's shareholders into a takeover. The privately-owned firm previously offered 2,800p per share in late June.