Senior plc (LON: SNR) have seen their shares spike on Monday morning after the firm confirmed speculation regarding a review of its Aerostructures business.
Senior is an international, market-leading, engineering solutions provider with 32 operating businesses in 14 countries.
Senior designs, manufactures and markets high-technology components and systems for the principal original equipment producers in the worldwide aerospace, defense, land vehicle and power & energy markets.
The Group is split into two divisions, Aerospace and Flexonics, servicing five key sectors.
The British aerospace and automotive company is working with adviser Lazard Ltd. on the potential divestment, which seems to have won the approval of shareholders.
Shares of Senior plc spiked 7.25% to 190p on the announcement. 9/12/19 11:38BST.
Senior can confirm that it has been reviewing all strategic options for its Aerostructures business, which includes an early stage assessment of a potential divestment of the division,” the FTSE 250 listed company said.
The Hertfordshire-based company added that the Aerostructures review is in line with Senior’s policy to review its portfolio and evaluate all its operating businesses in terms of their strategic fit within the group.
The Aerospace unit supplies components for airplanes such as Boeing (NYSE: BA) accounts for 70% off overall revenues, and the aerospace business includes divisional sections such as fluid conveyance and engines.
In a time where the defense technology sector has never been so competitive, gains have been made by rivals.
In November, UK government had appeared to have give the green light for the planned purchase of Cobham (LON:COB) by US private equity group Advent, which was pondered by British business minister Andrea Leadsom.
Certainly shareholders should remain optimistic about the progress of Senior plc, and this has been reflected in this mornings stock price, as the market continues to remain competitive it seems that shareholders want Senior to cash in on its Aerostructures division whilst the chance is there.