The New Par Investment Partners Lp Holding in Global Eagle Entertainment Inc
Par Investment Partners Lp filed with the SEC SC 13D/A form for Global Eagle Entertainment Inc. The form can be accessed here: 000119312516768437. As reported in Par Investment Partners Lp’s form, the filler as of late owns 34.3% or 29,458,465 shares of the Finance–company.
Global Eagle Entertainment Inc stake is a new one for the and it was filed because of activity on November8, 2016. We feel this shows Par Investment Partners Lp’s positive view for the stock.
Reasons Why Par Investment Partners Lp Bought – Global Eagle Entertainment Inc Stock
PURPOSE OF TRANSACTION.
On November8, 2016, PAR Investment Partners entered into a letteragreement (the “Stage 2 Letter Agreement”) with the Issuer, Shareco Group of America, Inc. (“Shareco America”), HNA Group Co., Ltd. (“HNA Group”) and Beijing Shareco Technologies Co., Ltd.(“Shareco China”) pursuant to which such parties agreed to endeavor in good faith during a specified negotiating period to prepare and negotiate definitive agreements generally consistent with a term sheet attached to the Stage 2Letter Agreement (the “Stage 2 Term Sheet”). The negotiating period commenced on November8, 2016 and continues until the earliest of (x)two months following the closing of the Shareco Initial Investment, (y)thetermination of the Shareco Investment Agreement prior to such closing and (z)July8, 2017 (the “Negotiating Period”). On November8, 2016, the Issuer entered into an Investment Agreement (the “SharecoInvestment Agreement”) with Shareco America and, for limited purposes set forth therein, HNA Group, Shareco China and, upon entering into a joinder to the Shareco Investment Agreement, Bluefocus (Beijing) Investment Management Co., Ltd.Pursuant to the Shareco Investment Agreement, and subject to the terms and conditions set forth therein, Shareco America will purchase from the Issuer shares of the Common Stock for $11.00 per share that will result in Shareco America owning 9.9% ofthe issued and outstanding Common Stock (the “Shareco Initial Investment”).
The parties expect that the transactions contemplated by theStage 2 Term Sheet (the “Stage 2 Transactions”) will consist of the following:
|•||Shareco America will purchase from the Issuer up to $150 million of the Common Stock for $11.00 per share (the “Shareco Subsequent Investment”);|
|•||Shareco America will purchase additional shares of the Common Stock for $11.00 per share from the Issuer’s stockholders pursuant to a public tender offer (the “Tender Offer”) such that, aftercompletion of the Tender Offer, Shareco America and its affiliates will own up to 34.9% of the outstanding shares of Common Stock;|
|•||PAR Investment Partners will (i)subject to the limitations in the Stage 2 Term Sheet, tender in the Tender Offer its pro rata portion of the maximum number of shares subject to the Tender Offer and, if the TenderOffer is not fully subscribed, tender additional shares such that the maximum number of shares subject to the Tender Offer are tendered, and (ii)vote in favor of the issuance of the Shareco Subsequent Investment and Shareco America’spurchase of Common Stock in the Tender Offer; and|
|•||Shareco China and the Issuer will enter into a joint venture to provide inflight entertainment and connectivity (“IFEC”) in China (the “China JV”) and exclusively service aircraftoperated by HNA Group airlines.|
If consummated, the Issuer will contribute the proceeds of the Shareco Subsequent Investment to the China JVin connection with the China JV’s formation for an ownership stake of up to 49% of the China JV. Shareco China expects to contribute substantially all of its assets and liabilities to the China JV, including exclusive contractual rights toprovide IFEC services to HNA Group airlines.
The completion of the Stage 2 Transactions is subject to the satisfaction of various conditions, which areexpected to include applicable antitrust approvals, approvals from the Committee on Foreign Investment in the United States and the Defense Security Service of the U.S. Department of Defense, and approvals by the Issuer’s stockholders andShareco China’s shareholders.
Until the earlier of (a)February8, 2017 and (b)the termination of the Shareco Investment Agreementprior to the closing of the transactions contemplated therein, subject to exceptions, each of the Issuer, Shareco America (and its affiliates) and PAR Investment Partners agreed not to solicit any offer or proposal for a change in control of suchparty (or, in the case of PAR Investment Partners, a change in control of the Issuer), or for any other transaction that would conflict with or prevent the consummation of the Shareco Initial Investment or the Stage 2 Transactions or any combinationof them.
Under the Stage 2 Letter Agreement, PAR Investment Partners also agreed not to transfer any shares of the Common Stock or any other Issuervoting securities during the Negotiating Period if such transfer would result in PAR Investment Partners owning less than the maximum number of shares of the Common Stock that PAR Investment Partners could be required to sell in the Tender Offer (asdescribed above). PAR Investment Partners and the Issuer also agreed to amend in certain respects the Amended and Restated Registration Rights Agreement among the Issuer, PAR Investment Partners and certain other stockholders of the Issuer.
The foregoing description of the Stage 2 Letter Agreement does not purport to be complete and is qualified in its entirety by reference to the text of theagreement, which is included as Exhibit 1.1 to this Amendment No.4 and is incorporated by reference herein.
Global Eagle Entertainment Inc Institutional Sentiment
Latest Security and Exchange filings show 90 investors own Global Eagle Entertainment Inc. The institutional ownership in Q3 2015 is high, at 95.04% of the outstanding shares. This is increased by 9252515 the total institutional shares. 81077250 were the shares owned by these institutional investors. In total 15 funds opened new Global Eagle Entertainment Inc stakes, 31 increased stakes. There were 11 that closed positions and 29 reduced them.
4 managers had the stock in their top Ten. Notable investors are: Par Capital Management Inc, Stonerise Capital Management Llc..
J. Carlo Cannell Cannell Capital Llc is an institutional investor bullish on Global Eagle Entertainment Inc, owning 659275 shares as of Q3 2015 for 2.84% of its portfolio. David Abrams Abrams Capital Management Lp owns 5000000 shares or 4.11% of its portfolio. CA Omt Capital Management Llc have 4.61% of their stock portfolio for 329260 shares. Further, Stonerise Capital Management Llc reported stake worth 8.63% of its US stock portfolio. The MA Par Capital Management Inc owns 28981072 shares. Global Eagle Entertainment Inc is 7.02% of the manager’s US portfolio.
Global Eagle Entertainment Inc. is a provider of aircraft connectivity systems, operations solutions and media content to the travel industry. The Company’s segments include Connectivity and Content. Its Connectivity segment provides airline partners and their passengers with Wireless Fidelity (Wi-Fi) connectivity over Ku-band satellite transmissions, and to a lesser extent operations solutions to airline customers. Its Content segment selects, manages and distributes wholly owned and licensed media content, video and music programming, applications, digital advertising solutions and games to over 150 airlines across the world, as well as to maritime and other away-from-home non-theatrical markets. The Company, through its product and services platform, provide airlines with a range of in-flight solutions, including Wi-Fi, movies, television, music, interactive software, as well as portable in-flight entertainment (IFE) solutions, content management services and e-commerce solutions.
SEC Form 13D is filed within 10 days, by anyone who acquires beneficial ownership of 5%+ of any public firm. Activist investors and practices such as: company breakups, hostile takeovers, and change of control events, are permitted for this form filers. A filer must promptly update its 13D filing in case of acquisition or disposition of 1% or more of the securities that are the subject of the filing.
Insitutional Activity: The institutional sentiment decreased to 0.91 in Q2 2016. Its down 0.41, from 1.32 in 2016Q1. The ratio dropped, as 24 funds sold all Global Eagle Entertainment Inc shares owned while 21 reduced positions. 9 funds bought stakes while 32 increased positions. They now own 74.66 million shares or 2.96% less from 76.93 million shares in 2016Q1.
Tiaa Cref Inv Mgmt Limited Company holds 148,982 shares or 0% of its portfolio. Moreover, Trexquant Investment Limited Partnership has 0.02% invested in Global Eagle Entertainment Inc (NASDAQ:ENT) for 24,080 shares. The Washington-based Parametric Portfolio Associates Ltd Llc has invested 0% in Global Eagle Entertainment Inc (NASDAQ:ENT). Millennium Mngmt Limited has 0% invested in the company for 245,377 shares. National Bank & Trust Of Mellon Corporation holds 0% or 186,508 shares in its portfolio. Teacher Retirement Systems Of Texas last reported 0% of its portfolio in the stock. The Massachusetts-based Par Cap Management has invested 3.19% in Global Eagle Entertainment Inc (NASDAQ:ENT). Legal & General Group Inc Plc accumulated 0% or 7,637 shares. Td Asset Mgmt Incorporated has invested 0% of its portfolio in Global Eagle Entertainment Inc (NASDAQ:ENT). Stonerise Mgmt Limited Liability Corporation, a California-based fund reported 1.70M shares. Jpmorgan Chase And accumulated 0% or 6,513 shares. Alliancebernstein Limited Partnership accumulated 46,000 shares or 0% of the stock. Ionic Ltd Liability Corp last reported 0.01% of its portfolio in the stock. Walleye Trading Limited Liability Co holds 0% or 1,304 shares in its portfolio. Ubs Asset Americas accumulated 19,900 shares or 0% of the stock.
Insider Transactions: Since August 16, 2016, the stock had 0 buys, and 1 insider sale for $28,756 net activity. On Tuesday, August 16 Chatterjee Aditya sold $28,756 worth of the stock or 3,129 shares.
The stock closed at $6.84 during the last session. It is down 24.00% since April 13, 2016 and is downtrending. It has underperformed by 27.93% the S&P500.
Global Eagle Entertainment Inc. is a well-known provider of aircraft connectivity systems, activities solutions and media content to the travel industry. The company has a market cap of $560.57 million. The Company’s divisions include Connectivity and Content. It currently has negative earnings. The Company’s Connectivity segment provides airline partners and their passengers with Wireless Fidelity connectivity over Ku-band satellite transmissions, and to a lesser extent activities solutions to airline customers.
Global Eagle Entertainment Inc (NASDAQ:ENT) Ratings Coverage
Out of 3 analysts covering Global Eagle Entertainment (NASDAQ:ENT), 2 rate it a “Buy”, 0 “Sell”, while 1 “Hold”. This means 67% are positive. $16 is the highest target while $11 is the lowest. The $13.50 average target is 97.37% above today’s ($6.84) stock price. Global Eagle Entertainment has been the topic of 3 analyst reports since October 8, 2015 according to StockzIntelligence Inc. Citigroup maintained it with “Buy” rating and $11 target price in Wednesday, July 20 report. The firm has “Buy” rating by Evercore given on Thursday, October 8. Needham initiated the shares of ENT in a report on Tuesday, October 27 with “Hold” rating.
More notable recent Global Eagle Entertainment Inc (NASDAQ:ENT) news were published by: Wsj.com which released: “HNA Affiliate to Invest in Global Eagle Entertainment” on November 08, 2016, also Globenewswire.com with their article: “Global Eagle Entertainment Completes Acquisition of Emerging Markets …” published on July 27, 2016, Globenewswire.com published: “Global Eagle Entertainment Inc. Schedules Third Quarter 2016 Earnings Release …” on October 27, 2016. More interesting news about Global Eagle Entertainment Inc (NASDAQ:ENT) were released by: Streetinsider.com and their article: “Global Eagle Entertainment (ENT) to Acquire Emerging Markets Communications in …” published on May 09, 2016 as well as Globenewswire.com‘s news article titled: “Global Eagle Entertainment and Air China Launch Landmark Connectivity Trial” with publication date: November 01, 2016.
According to Zacks Investment Research, “Global Eagle Entertainment Inc. offers content and connectivity services for the airline industry. It provides airlines with in-flight video content, e-commerce and information services. Global Eagle Entertainment Inc., formerly known as Global Eagle Acquisition Corp., is headquartered in Los Angeles, California.”
ENT Company Profile
Global Eagle Entertainment Inc., incorporated on February 2, 2011, is a well-known provider of aircraft connectivity systems, activities solutions and media content to the travel industry. The Company’s divisions include Connectivity and Content. The Company, through its product and services platform, provide airlines with a range of in-flight solutions, including Wireless Fidelity (Wi-Fi), movies, television, music, interactive software, as well as portable in-flight entertainment (IFE) solutions, content management services, e-commerce solutions and original content development. The Firm deploys its connectivity services across the world to the airline industry, with clients and flights located in North America, the Caribbean, Asia, the Middle East, Africa and Europe. It provides content curating and processing services to the airline, maritime, and non-theatrical industries. The Company’s clients also include Hollywood and international studios.
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