Simpson Thacher is representing Global Eagle Entertainment Inc. (NASDAQ: ENT) in connection with a $103 million strategic investment in Global Eagle from Beijing Shareco Technologies Co., Ltd. (“Shareco”), pursuant to which Shareco will purchase common stock from Global Eagle that is expected to represent 9.9% of Global Eagle’s outstanding shares. The investment is subject to regulatory review and other customary closing conditions.
In connection with this investment, Global Eagle and Shareco plan to create a joint venture to provide inflight entertainment and connectivity services to commercial aircraft in China operated by HNA Group, which is affiliated with Shareco and one of China’s largest conglomerates. Upon the formation of the joint venture, Shareco plans to make additional primary and secondary purchases of Global Eagle common equity that would bring its total expected investment in Global Eagle to $416 million, representing an expected 34.9% of Global Eagle’s outstanding shares. The joint venture and additional equity investments are subject to the parties entering into definitive investment and joint venture agreements, as well as regulatory review, Global Eagle shareholder approval and other customary closing conditions.
Global Eagle is a leading provider of satellite-based connectivity and media to fast-growing, global mobility markets across air, sea and land. Shareco is a leading company in China's inflight entertainment and connectivity market.
The Simpson Thacher team included Chad Skinner, Alexis Orenstein, Andy Roy and Colin Osiecki (M&A); Bill Brentani and Kelli Schultz (Capital Markets); Peter C. Thomas, Michael Naughton, Ellen Frye, David Shogren and Andrew Hasty (Regulatory); Marcela Robledo (IP); and Jason Vollbracht and Tanvi Mirani (Tax).