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Lone Star hikes offer in final bid to take engineer Senior private

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Senior said it expects that its aerospace business will see "good growth" this year due to the increasing number of aircrafts being built.
Senior said it expects that its aerospace business will see "good growth" this year due to the increasing number of aircrafts being built.

Private equity firm Lone Star has today upped its bid for aircraft parts maker Senior, sending the Rickmansworth-headquartered company’s shares up 10.8 per cent this afternoon.

Last month the FTSE-listed company rejected Lone Star’s £738m bid, saying that it fundamentally undervalued the company.

But now the finance house has jacked up its bid from 176p per share to 200p per share, which it said was a 69 per cent premium on Senior’s closing price on 27 May. The offer values the company at £838.8m.

It is the fifth – and final – bid that Lone Star has made for the firm, which makes high-tech components for the aerospace industry, it said.

Senior has been a victim of the decline in air travel over the last year, swinging from a profit of £78.5m in 2019 to a £6.2m loss last year.

The firm did not immediately respond to the bid.

Last month Peel Hunt analysts said that it was unlikely that an offer would be accepted.

However, it added that there was a “window for a deal to be done” at 200p, the new offer price.