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June 22 (Reuters) - Aircraft and car parts supplier Senior Plc on Tuesday rejected a $1.2 billion buyout offer from U.S.-based Lone Star Global, saying the sweetened proposal made a day earlier “continues to fundamentally” undervalue the British company.
The London-listed company has now rejected all the five proposals from the private-equity firm as undervaluing it, while maintaining it had enough resources to deliver on its strategy by itself.
Senior said there was no basis to engage with Lone Star at present after the fund on Monday said its 200-pence-per-share final offer could be increased only if a rival bid was made.
“The board believes we have a clear strategy that will maximise value for shareholders over the medium-term and accordingly, the board is not able to recommend a sale of the business at 200 pence per share,” Senior Chairman Ian King said in a statement.
Still, the company said it would be willing to engage with Lone Star or other potential suitors at a fair price.
While the pandemic and Boeing’s 737 MAX crisis hit the company and other suppliers hard, Senior has been restructuring its business by selling non-core units and cutting jobs.
The company on Tuesday said trading results in the five months to May had been ahead of management expectations, as it prepared to report interim results on Aug. 2.
Overall sales were 15% lower on a constant currency basis compared to the same period last year, the company said.
Reporting by Pushkala Aripaka in Bengaluru; Editing by Sriraj Kalluvila