Intertek surges as EQT lifts takeover proposal to £9.4bn

(Sharecast News) - Intertek shot higher on Tuesday after Swedish private equity firm EQT lifted its takeover approach for the inspection, product testing and certification group to around £9.4bn.

EQT made a third and final offer for Intertek at £60 per share, up from £58 in cash. The PE firm noted that once the final dividend of 107.7p per share is included, the total value would be £61.077 per share.

The cash consideration represents a premium of 59% to the closing share price on 9 April, which was the day before EQT submitted its initial proposal to Intertek. EQT had previously offered £51.50 and £54.00 per share.

"EQT believes the final proposal delivers certain and accelerated cash value at a full valuation for Intertek shareholders, superior to the range of outcomes associated with Intertek's standalone prospects," it said. "EQT has submitted this final proposal with a view to progressing swiftly towards a recommended firm offer in the interests of Intertek shareholders."

Intertek said in a statement that it was reviewing the final proposal with its advisers and a further announcement will be made in due course.

"There can be no certainty that any offer will be made nor as to the terms on which any offer might be made," it said.

At 0905 BST, the shares were up 6.5% at 5,302.81p.

Late on Monday, activist investor Primestone Capital urged Intertek to engage with EQT about the potential takeover.

In a letter to the board of directors, Primestone - which holds a 0.5% stake - said: "We urge the board to engage constructively with EQT, grant supervised due diligence access, and take a more realistic approach when assessing fair value.

"We believe EQT's latest proposal does not 'significantly undervalue' Intertek, whether judged against the company's standalone track record or the realistic outcome of the board's newly announced strategic review."

At 0910 BST, the shares were up 6.5% at 5,305p.

Under UK takeover rules, EQT has until 1700 BST on 14 May to either announce a firm intention to make an offer or walk away.

See latest RNS on Investegate

Intertek Group