Signature Aviation in talks with Blackstone over $5.17 a share offer

Signature Aviation surged on Thursday after confirming it is in talks with private equity firm Blackstone about a possible cash offer of $5.17 a share for the company.

The aviation services group said it had also received an indicative proposal from Global Infrastructure Partners (GIP) about a possible cash offer at a lower price than the Blackstone proposal and that this was rejected.

"A further announcement will be made as and when appropriate. There can be no certainty that any offer will be made nor as to the terms of any offer," Signature said.

At 1400 GMT, the shares were up 35% at 362p.

Neil Wilson, chief market analyst at Markets.com, said: "Blackstone has eyes on cheap UK equities like many other private equity firms right now. Pandemic + Brexit left Signature looking cheap and looks well positioned for rebound in air travel next year.

"I think as said before there is just an absolute of sea of private equity money ready to be deployed and we are starting to see that take shape - UK listed shares have value because of the Brexit discount. Signature is a global business so well insulated to any trouble in the UK economy."