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PARIS (Reuters) - France's Safran (SAF.PA) is cutting its core cash offer for Zodiac Aerospace (ZODC.PA) by 15 percent to 25 euros (£21.5) per share as part of a restructured proposal to buy the aircraft seats maker, whose shares have been hit by recent profit warnings.
The two companies said they had reformulated the agreed proposal, which would also include an alternative offer of preferred Safran shares, of a type that cannot be sold for three years, up to a total of 31.4 percent of the offer.
The revised terms suggest that Zodiac core family shareholders who decide to accept the offer will no longer qualify for longstanding tax benefits that would have been preserved under the original offer outlined in January, since their special shareholder pact will no longer exist.
Safran now expects to reach its targeted return on the investment by 2020 or 2021, added the companies' joint statement.
Reporting by Tim Hepher; Editing by Sudip Kar-Gupta