A360
Key Takeaways✦ Atlas AI
01
Intertek to recommend EQT's fourth bid.
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Deal valued at $12.72 billion.
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EQT granted due diligence access.
Atlas AI
Intertek said Wednesday it is likely to recommend a £9.4 billion takeover proposal from Swedish private equity group EQT, after rejecting three earlier approaches. The British product testing company said it has granted EQT access to confirmatory due diligence and extended the deadline for a firm offer to June 11. Intertek cautioned there is no certainty an offer will be made.
The company said its board considers the financial terms of EQT’s fourth and final proposal to deliver value in cash at a level it would be minded to recommend to shareholders. Intertek also said it has paused a strategic review it had been conducting.
Intertek shares rose nearly 8% to 57.2 pounds in early trading after the update. If completed, the transaction would be the UK’s third-largest private equity takeover, according to LSEG data.
Terms of the latest approach
Under EQT’s latest proposal, shareholders would receive 60 pounds per Intertek share in cash and a potential 1.1‑pound annual dividend. Intertek said the offer represents a 40% premium to the stock’s closing price on April 15, the day before EQT’s initial approach was made public.
Intertek had previously rejected three proposals from EQT, citing concerns over valuation and execution risk. The company said some investors pressed it to engage with EQT’s revised terms, leading it to open the door to due diligence.
Next steps and timing
Intertek said it is giving EQT access to confirmatory due diligence before EQT decides whether to confirm its proposal and make a firm offer. The company set June 11 as the new deadline for that decision.
Investors will be watching whether EQT proceeds to a firm offer by the deadline and how Intertek’s paused strategic review factors into any final decision.
