UK laboratory testing company Intertek has rejected the latest bid proposal from Swedish suitor EQT worth £8.9 billion.
London-based Intertek said its board “unanimously and unequivocally rejected” the approach and continues to put faith in its strategic review launched last month, which included considering a potential break-up of the business into two separate divisions.
Intertek said: “The board of Intertek has carefully reviewed the further revised proposal with its advisers and unanimously concluded that it significantly undervalues Intertek and its future prospects, and there is significant execution risk given its conditional nature.”
It said it was looking to either sell or spin off its Intertek Energy and Infrastructure division from Intertek Testing and Assurance, but that it is “prioritising a sales-led process”.
The firm added it has “already received an encouraging level of interest from potential buyers of Intertek Energy and Infrastructure”.
It plans to complete the strategic review and put in place the changes by the middle of next year.
“The ambition is to move as expeditiously as possible whilst ensuring the strongest outcome for shareholder value,” it said.
Tuesday’s approach marked the third offer from Swedish private equity company EQT in its effort to secure a takeover deal.
The latest proposed bid would see EQT pay £58 per share in the company, up from previous offers of £54 and £51.50 per share.
EQT said on putting forward the proposal on Tuesday: “EQT believes this further increased proposal delivers certain and accelerated cash value for shareholders, superior to the range of outcomes associated with Intertek’s standalone prospects.
“EQT is price-disciplined and has submitted this significantly higher proposal with a view to securing prompt and constructive engagement from the board of Intertek, and progressing swiftly towards a transaction in the interests of all stakeholders.”
The suitor said there is no certainty that a formal takeover offer will be made.
It has until 5pm on May 14 to make a firm bid or walk away under City Takeover Panel rules.
This article was written by Holly Williams from The Independent and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.