Swedish private equity firm EQT has increased its takeover offer for Intertek to approximately £9.7bn, in a renewed attempt to acquire the UK-listed testing and certification group after its initial proposal was rejected, according to a report by the Financial Times.
The revised bid, reportedly pitched at around £54 per share, represents a modest increase on EQT’s earlier indicative offer of £51.50 per share in cash. The proposal values Intertek’s equity at more than £8.3bn and, including debt, brings the total enterprise value to roughly £9.7bn.
Intertek confirmed it is reviewing the updated approach with advisers. Its board previously dismissed EQT’s earlier offer, stating it significantly undervalued the company and its future prospects.
The approach comes shortly after Intertek launched a strategic review of its operations, including a potential separation of its energy and infrastructure division. The timing of that announcement, followed by EQT’s disclosed interest, has added momentum to takeover speculation.
Intertek shares have rallied strongly since EQT’s initial bid became public, rising by around a third this month after a period of volatility earlier in the year when the stock fell sharply on weaker outlook commentary from key business segments.
Market conditions across the wider testing and certification sector have also been mixed, with peer Bureau Veritas recently cutting its growth outlook, sending its shares lower and highlighting ongoing pressure on industry valuations.
EQT’s revised proposal increases pressure on Intertek as the UK takeover panel-imposed deadline approaches, with the firm required to either announce a firm intention to bid or withdraw by mid-May.
There is no certainty that a binding offer will ultimately be made or that any transaction will proceed.
