Why Signature Aviation shares jumped 40% last week

first_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. “This Stock Could Be Like Buying Amazon in 1997” Why Signature Aviation shares jumped 40% last week I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Image source: BAE Systems Shares of Signature Aviation (LSE: SIG) jumped over 40% last Thursday following the announcement of a potential cash offer for the entire business. Despite appearances, the proposed acquisition has not yet been accepted and may not even happen. So here’s what you need to know.A cash offer for Signature AviationBlackstone and Global Infrastructure Partners (GIP) have issued proposals to Signature Aviation’s management team to buy out the entire business using cash. The bid from GIP was lower than Blackstone’s offer and therefore has been rejected.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…If approved, shareholders would receive £3.86 per share in the form of cash. This represents an acquisition premium of 44% compared to the closing price before the announcement was made. And so the share price has surged by almost the same amount.Blackstone has until January 14 to confirm whether it wishes to proceed with its offer to acquire Signature Aviation. If it does, Signature’s management will review the proposal and make a formal recommendation to shareholders whether to accept or reject the offer. A majority shareholder vote will be required to proceed, as well as approval from market regulators such as the Financial Conduct Authority.The official stance from the company seems to be leaning towards accepting the deal. It has made a formal recommendation to Blackstone to confirm an offer at the price set in its initial proposal. This would indicate that it’s likely to accept the deal if the price remains the same. But, as the negotiations are still ongoing, management is currently recommending that investors should take no action at this time.What to expect in the near futureJust like the rest of the aerospace industry, Signature Aviation has been heavily impacted by Covid-19. The firm provides premium full-service flight support for the Business and General Aviation (BG&A) market. This includes refuelling, ground handling, concierge services, and passenger/pilot amenities. With most flights being grounded, business has been slow.But, thanks to the recent sale of its Ontic division, it was able to clear the majority of its near-term obligations. As a result, the earliest maturity date of the remaining debt is not until 2025.Why does this matter? The current stock price has been elevated by expectations of an acquisition early next year. Suppose the proposed deal falls apart? In that case, the 40% boost to the share price may disappear as shareholder expectations are not met. But the underlying business remains financially sound, and thus this decline may only be temporary.Is it a good deal?Let’s ignore the cash offer for a moment. Fundamentally, the business looks healthy with plenty of room left for growth over the long term. While short-term disruptions have created problems, the stock’s strong liquidity should be able to see it through the remainder of the pandemic.The cash offer presents an opportunity for investors to close their positions at a seemingly reasonable price in today’s market climate. But even if this acquisition fails to materialise, the company appears to have everything it needs to grow over the next decade. Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!center_img Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Zaven Boyrazian does not own shares in Signature Aviation. The Motley Fool UK has recommended Signature Aviation. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Enter Your Email Address See all posts by Zaven Boyrazian Zaven Boyrazian | Monday, 21st December, 2020 | More on: SIG last_img read more

Sky narrows down choice to two charities

first_imgThe Chicken Shed Theatre Company and NCH have made it to the final stage in broadcaster Sky’s Make It Big charity selection process.Both charities, selected from a shortlist of ten, will now be visited by a group of Sky executives to see how the charities work on the ground, and how they would spend at least £1 million that the partnership is likely to generate over the next three years. Following these visits a Make it Big charity will be announced.The Chicken Shed Theatre Company encourages young people from all backgrounds and of all perceived abilities to work together to produce high quality drama, music and dance performances. NCH works in partnership to run more than 500 projects for the UK’s most vulnerable children, young people and their families, and in doing so supports over 140,000 people. Advertisement AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to LinkedInLinkedInShare to EmailEmailShare to WhatsAppWhatsAppShare to MessengerMessengerShare to MoreAddThis Sky narrows down choice to two charities About Howard Lake Howard Lake is a digital fundraising entrepreneur. Publisher of UK Fundraising, the world’s first web resource for professional fundraisers, since 1994. Trainer and consultant in digital fundraising. Founder of Fundraising Camp and co-founder of GoodJobs.org.uk. Researching massive growth in giving.  15 total views,  1 views today AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to LinkedInLinkedInShare to EmailEmailShare to WhatsAppWhatsAppShare to MessengerMessengerShare to MoreAddThis Howard Lake | 28 July 2004 | News From 165 initial applications, ten charities were shortlisted to have a short film made about their work by the Media Trust: Barretstown, Chicken Shed Theatre Company, I CAN, The National Autistic Society/ASPIRE, NCH, The Prince’s Trust, Shelter, UK Youth, Whizz-Kidz and YouthNet UK. These films have already appeared on The Community Channel and were specifically created to help the charities promote their work and act as a fundraising tool.last_img read more