Searchlight Capital to buy 26 pct stake in France's Latecoere (updated)

Latecoere SA

02/04/2019 06:43

* Buying stake at price of 3.85 euros/share
    * Searchlight seeking board representation at Latecoere 

 (Adds more details and background)
    PARIS, April 2 (Reuters) - Investment company Searchlight
Capital Partners has agreed to buy a 26 percent stake in French
aeronautics company Latecoere  LAEP.PA  for around $106.8
million, in the latest example of activist funds targeting
French companies.
    Searchlight Capital said it would buy the stakes in
Latecoere held by Apollo Capital Management  APO.N , Monarch
Alternative Capital and CVI Partners, at a price of 3.85 euros
per share.
    Latecoere shares closed at 3.13 euros on April 1, giving the
company a market capitalisation of around 300 million euros 
($336 million).
    Latecoere had cut its earnings outlook last December after
start-up costs related to new contracts hit its margins and cash
flow, although the company's latest set of results earlier this
month showed signs of a recovery.  urn:newsml:reuters.com:*:nL5N20T1QY
    Latecoere said it welcomed Searchlight's move and
Searchlight's presence on its board of directors.
    "The company welcomes this proposed transaction, Searchlight
having shown on this occasion its support for the strategy
proposed by management and approved by the board of directors
and confirms that Searchlight will propose three candidates to
be approved by the board of Directors to join the board of
directors," Latecoere said in a statement.
    ($1 = 0.8926 euros)

 (Reporting by Sudip Kar-Gupta; Editing by Rashmi Aich)
 ((sudip.kargupta@thomsonreuters.com; +33 1 49 49 53 84;))