Intertek is preparing to reject a revised takeover proposal from Swedish private equity group EQT, as the FTSE 100 testing and inspection company maintains that the latest offer still undervalues the business, according to a report by then Financial Times.
EQT recently increased its indicative bid to £58 per share, equivalent to an equity value of around £8.9 billion and approximately £10.3bn including debt. The proposal follows two earlier offers of £51.50 and £54 per share, both of which were previously dismissed by Intertek’s board.
The report cites unnamed people familiar with the matter as indicating that while Intertek is likely to turn down the latest proposal, it is viewed as moving closer to an acceptable valuation level, leaving open the possibility of a further improved bid.
The latest offer represents a significant premium to Intertek’s share price prior to EQT’s initial approach in April, although the stock continues to trade below the proposed takeover level.
Following EQT’s initial approach, Intertek launched a strategic review that includes potential options for its energy and infrastructure division, including a possible separation or disposal.
Investor interest in the company has also increased, with activist involvement reported in the share register, adding to pressure around potential restructuring.
Under UK takeover rules, EQT faces a deadline of 14 May to either formalise a binding offer or withdraw from the process, keeping the situation firmly in play as negotiations continue.
