Business Wire

Kite Lake Sends Letter to Inmarsat Plc Board of Directors Following Letters From Oaktree and Rubric

Share

Kite Lake Capital Management (UK) LLP which, as Investment Manager / Sub-Advisor for and on behalf of underlying funds, has an economic interest in 17,770,258 shares (over 3.8% of the outstanding equity) of Inmarsat Plc ("Inmarsat") has today announced that it has sent a letter to the Board of Directors of Inmarsat following earlier letters from Oaktree Capital Management, L.P. and Rubric Capital Management LP.

The full text of the letter is set out below.

The Board of Directors of Inmarsat Plc
99 City Road
London, EC1Y 1AX
UK

5 November 2019

To the Board of Directors of Inmarsat Plc:

Kite Lake Capital Management (UK) LLP (“Kite Lake”), as Investment Manager / Sub-Advisor for and on behalf of underlying funds, has an economic interest in 17,770,258 shares of Inmarsat Plc (over 3.8% of the outstanding equity).

Kite Lake notes the letter published by Oaktree Capital Management (“Oaktree”) on 5 November 2019, and we are in full agreement with the points Oaktree raises. This is an almost unprecedented situation, in which a spectrum asset (“Ligado”), appears to have been ascribed limited to zero value in the analysis of the fairness of the Consortium Scheme price. This is evidenced by the lack of any reference in the Scheme document to Ligado’s potential value, and on the 1Q 2019 Inmarsat Earnings Call held 1st May 2019: To quote CEO Rupert Pearce “… there will be no Ligado revenues in 2019 and we’re not planning for them to return to paying us, anytime in the near future.”

It has since been widely reported that Ligado could very well receive final regulatory approval imminently after over 10 years of delays. This approval is potentially only weeks away, and at the very minimum, we believe that the Board should delay the Scheme hearing until just prior to the Long Stop Date of 10 December 2019 to allow as much time as possible to clarify the regulatory position of Ligado to determine the best course of action with respect to Inmarsat’s current shareholders.

The question we pose to the Board is simple: given the material prospect of regulatory approval prior to the Long Stop Date, would the Board recommend a $7.09 offer if it was made today? We believe the answer should be a categorical no.

We also note the letter of today's date from Rubric Capital Management LP ("Rubric"). Like Rubric, in May 2019, Kite Lake voted for the Scheme, having moved shares owned into “cash” from “swap”, at the expense of the funds managed by Kite Lake at the request of Consortium advisors (on the basis that the vote was expected to be very close). We did so after several discussions with one of the Financial Advisors of the Consortium, with the understanding that if there was a material development with respect to Ligado prior to the Scheme Sanction, the Board would have the ability to either change its recommendation of the Scheme or delay the Scheme hearing.

We believe the Board must do the right thing for existing shareholders and delay the Scheme hearing as long as possible in order to clarify the current state of Ligado. We don’t see any disadvantage to existing shareholders in doing so. The shareholders deserve nothing less.

We note the announcement made by Inmarsat today. If the Board declines to engage with the Oaktree request, Kite Lake’s current intention is to attend the Scheme Hearing, and to indicate our concerns relating to the proposed transaction to the Court.

Sincerely,

Jamie Sherman

Partner

To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.

Contact information

Jamie Sherman
+44 207 052 8310
jamie.sherman@kitelake.com

About Business Wire

Business Wire
Business Wire
24 Martin Lane
EC4R 0DR London

+44 20 7626 1982http://www.businesswire.co.uk

(c) 2018 Business Wire, Inc., All rights reserved.

Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.

Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

H.I.G. Capital Announces the Sale of DGS S.p.A.11.6.2024 12:00:00 CEST | Press release

H.I.G. Capital (“H.I.G.”), a leading global alternative investment firm with $62 billion of capital under management, is pleased to announce that an affiliate has signed a definitive agreement to sell its portfolio company, DGS S.p.A. (“DGS” or the “Group”), a leading firm in the Italian Information Technology market, to DGS Co-Founders and management team in partnership with ICG, a global alternative asset manager. Since its inception in 1997, DGShas supported blue-chip customers in the design, integration, and maintenance of complex IT systems, with a specialization in digital transformation and cybersecurity services. The Group currently has over 1,900 employees, revenues of approximately €300 million, and maintains a group of highly loyal clientele. During H.I.G.’s ownership, DGS has tripled in size and consolidated its position as a leading Italian firm in cybersecurity services and digital transformation. DGS offers its clients sophisticated and proprietary digital transformation

Evertas Names Nick Selby Head of European Underwriting11.6.2024 12:00:00 CEST | Press release

Evertas, the world’s first crypto insurance company, has named Nick Selby as its new Head of European Underwriting. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240611141887/en/ Nick Selby, Executive Vice President and Head of European Underwriting at Evertas (Photo: Business Wire) Selby, an accomplished information and physical security professional, brings two decades of expertise in public and private sector information security, physical security, and complex incident handling, as well as seven years of experience leading teams securing billions of dollars in cryptoassets. Previously, his roles included VP of the Software Assurance Practice at Trail of Bits, Chief Security Officer at Paxos Trust Company, and Director of Cyber Intelligence and Investigations at the NYPD Intelligence Bureau. “Nick is an extremely valuable addition to our European team,” said Evertas CEO and Co-Founder J. Gdanski. “His public and private

Owlet utvider globalt fotavtrykk med lanseringen av medisinsk-sertifisert Dream Sock™ i Storbritannia og over hele Europa11.6.2024 11:00:00 CEST | Pressemelding

Owlet, Inc. («Owlet» or the «Company») (NYSE:OWLT), pioneren innen smart spedbarnsovervåking, kunngjør i dag den britiske og europeiske lanseringen av Dream Sock. Dette er en smart babymonitor med levende helseavlesninger og varsler for friske spedbarn mellom 0-18 måneder og 2,5-13,6 kg. Dette innovative medisinske utstyret gir foreldre helse og viktig informasjon i sanntid, noe som gir uovertruffen trygghet. Denne pressemeldingen inneholder multimedia. Se hele pressemeldingen her: https://www.businesswire.com/news/home/20240611820341/no/ (Photo: Business Wire) «Vi er svært stolte over å lansere Dream Sock til omsorgspersoner over hele Storbritannia og Europa og gi millioner av foreldre mer trygghet mens babyen sover,» sa Kurt Workman, Owlets administrerende direktør og medgründer. «Dream Sock er nå et globalt produkt som er anerkjent som medisinsk nøyaktig og trygt, etter å ha gjennomgått regulatoriske autorisasjoner og sertifiseringer innenfor flere geografier. I dag er misjonen vår

V-Nova Surpasses 1000 Patent Milestone in Media Technology Innovation11.6.2024 10:00:00 CEST | Press release

V-Nova, a leading provider of data compression solutions, video compression technology, XR technology, AI acceleration and parallel processing for a multitude of industries including media and entertainment, today announced its milestone achievement of 1000 active technology patents. This accomplishment underscores V-Nova’s dedication to research and development and its commitment to protecting its intellectual property globally. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240611724561/en/ V-Nova’s patent portfolio spans more than 50 different jurisdictions. Including over 400 patents in Europe, over 200 in the Americas, over 100 in the United States specifically, and over 200 in Asia. V-Nova forged new directions in data processing to enhance digital experiences, maximize efficiency, reduce costs, and increase sustainability. The company leads the way with key international data compression standards for the video indust

Alipay+ Reveals Top Scorer Trophy Design for UEFA EURO 2024™11.6.2024 09:24:00 CEST | Press release

Alipay+, a suite of cross-border mobile payment and digitalization technology solutions operated by Ant International and an Official Partner of UEFA EURO 2024™, today revealed the trophy that will be awarded to the most prolific marksman at the UEFA EURO 2024™ finale on July 14 in Berlin, Germany. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240610328619/en/ The UEFA Top Scorer Trophy presented by Alipay+ is unveiled for UEFA EURO 2024™ (Photo: Business Wire) Sculpted in the shape of the Chinese character “支” (pronounced zhi, and meaning payment as well as support), the trophy reflects Alipay+’s dedication to supporting consumers to enjoy seamless payment and a broad choice of deals using their preferred payment methods while traveling abroad. The character also resembles the fleeting moment of a barefooted striker poised to shoot, evoking the original beauty and power of football – a game that united people across the wo

World GlobeA line styled icon from Orion Icon Library.HiddenA line styled icon from Orion Icon Library.Eye