Cobham offloads two non-defence divisions to cut debt

COBHAM has agreed the sale of two non-defence businesses that it acquired during its disastrous takeover of the US communications specialist Aeroflex in 2014.

The British-headquartered Wireless division – which tests wireless and mobile phone networks – and the Us-based aircraft electronics division will be bought by Us-based Viavi Solutions for $455m (£325m) in cash, with Cobham using the proceeds to help cut its debt.

Last year Cobham ran a £500m rights issue after putting out five profit warnings in the preceding 15 months, and cleared out management.

It was widely considered to have overpaid when it bought Aeroflex for £870m. Problems with Cobham’s biggest contract – building an in-flight refuelling system for the US air force’s new KC-46 tanker – only compounded the problems.

Shares fell 6.4pc to 116.8p, a decline analysts attributed to the wireless business performing better than the market had expected.