Intertek Rejects EQT’s Takeover Bid
UK-listed testing and certification company Intertek has rejected an unsolicited buyout proposal from Swedish private equity firm EQT, which valued the business at around £7.9bn ($10.74bn), according to a report by Private Equity Wire. The offer, priced at 51.5 pounds per share, represented a 36.6% premium to Intertek’s closing price on 9 April, the day before EQT’s approach became public, and Intertek stated that the bid materially undervalued the company.
Details of the Proposal and Rejection
EQT’s proposal targeted Intertek, which provides quality, safety and sustainability testing services across global supply chains, and followed the company’s recent report of 5.4% like-for-like revenue growth in the first quarter. Intertek reaffirmed its outlook for mid-single-digit growth for the year, a factor that may have influenced its decision to reject the offer. Shares in Intertek rose sharply after the news of the proposal emerged, reflecting immediate market response to the valuation and premium offered.
Market and Analyst Reactions
Analysts suggested that EQT’s approach could encourage further interest from both financial and strategic buyers, with expectations that additional bidders may emerge, as noted in the Private Equity Wire report. Testing and certification peers also gained on the news, amid growing demand for compliance, sustainability and quality assurance services. This move occurs alongside increased private equity interest in UK-listed industrial and services companies, supported by relatively subdued valuations in the sector.
Intertek’s Strategic Review
Following the rejection, EQT indicated it is reviewing its options, while Intertek is pursuing a strategic review that includes exploring a potential separation of its two business divisions to unlock value. This development highlights ongoing efforts within the company to enhance shareholder returns, according to Private Equity Wire.
