Shares in Intertek (LSE:ITRK) climbed more than 5% on Tuesday after Swedish private equity firm EQT AB submitted a fourth and final takeover proposal for the British testing and certification group, valuing the company at approximately £9.4 billion ($12.7 billion).
The London-listed company confirmed it is reviewing the latest approach after previously rejecting three earlier offers from EQT.
Under the revised proposal, Intertek shareholders would receive 60 pounds per share in cash, alongside a potential fiscal 2025 dividend of 1.1 pounds per share. EQT’s previous proposals had been set at 51.5 pounds, 54 pounds and 58 pounds per share respectively.
The latest cash offer alone represents a premium of roughly 59% compared with Intertek’s share price before market speculation around a possible takeover first emerged, although the valuation remains below the stock’s highs reached during the pandemic period.
EQT said the proposal provides “certain and accelerated cash value at a full valuation for Intertek shareholders, superior to the range of outcomes associated with Intertek’s standalone prospects.”
EQT Faces Deadline Under UK Takeover Rules
Under UK takeover regulations, EQT has until Thursday to either submit a formal bid or withdraw its interest.
If Intertek rejects the latest proposal, the private equity group would generally be prevented from making another offer for at least six months, except under limited conditions.
Analysts at RBC Capital Markets said shareholders may now push the company’s board to engage more actively with EQT.
“We believe ITRK investors, some of whom have expressed that any offer would need to start with a ’6’, should encourage the board to seriously engage with EQT,” the analysts wrote.
“We see EQT’s bid as a fair balance between compensating ITRK shareholders for future upside potential, and creating a cushion of safety for EQT as it likely plans to prepare ITRK for the next stage on it strategic journey,” they added.
Strategic Review Continues Despite Bid Interest
Intertek has repeatedly rejected EQT’s approaches over recent weeks while continuing with its own strategic review process, which could potentially lead to a breakup of the business into separate units.
The company has argued that a full takeover could involve considerable execution risks and has also indicated that it has received encouraging interest in its energy and infrastructure operations.
Meanwhile, two shareholders — PrimeStone Capital and Palliser — have publicly urged Intertek’s board to open discussions with the buyout group.
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