Bill Gates, Blackstone weigh $4.3 billion bid for Signature Aviation's private jet bases

File image: Billionaire philanthropist and co-founder of Microsoft, Bill Gates (Image: Reuters)

Allying with Blackstone Group Inc., Bill Gates' Cascade Investment LLC on January 8 stated that is has joined the battle to acquire London-based Signature Aviation Plc. Along with Blackstone, Cascade is willing to spend $4.3 billion approach for the world’s biggest operator of private jet bases.

Microsoft Corp. founder Gates' Cascade, which owns 19 percent of Signature, is mulling to contribute his shareholding and top it up with cash to become a 30 percent owner. Under the Blackstone's $4.3 billion approach, Blackstone owns 70 percent of the bidding entity.

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According to details, both Gates and Blackstone are in advanced discussions with the London-based firm on a $5.17-a-share cash offer, Bloomberg reported. Earlier in December 2020, Signature Aviation had stated that it would accept Blackstone's approach if a firm offer were made at that level.

With Gates involving in Blackstone's approach, the latter's chances to purchase Signature has increased significantly. Next to Blackstone, Carlyle Group Inc and Global Infrastructure Partners are under consideration by Signature.

With the COVID-19 pandemic and the social distancing becoming the norm since 2020, private flying has gained momentum as one of the few travel sectors to have benefited, as passengers want to minimise potentially risk of coming in contact with fellow passengers.

Last year, Signature sold parts distributor Ontic for $1.4 billion and has focused on private aviation in recent years. The firm bought rival Landmark Aviation for $2.1 billion from Carlyle in 2016 and had acquired Epic Fuels for $88 million in 2018. The Microsoft founder, though Cascade Investment LLC., became an investor in 2009 and holds his stake.

Meanwhile, Signature has confirmed the Carlyle approach which is working with Bank of America Corp. and Morgan Stanley. It has also set a deadline February 4 for a Carlyle's offer, while for Blackstone and GIP, Signature has given the deadline as January 14, 2021.