Intertek shares rocket as Swedish private equity firm hikes bid for the company

Shares in laboratory testing company Intertek rocketed in morning trading on Tuesday after Swedish private equity firm EQT launched a fresh £8.9bn bid for the company.

The stock jumped 7.4 per cent to £51.61p, with shares up 13.3 per cent since the start of the year, after the Swedish firm proposed its third offer to acquire the FTSE 100 company.

The offer would see Intertek shareholders receive £58 in cash for each of their shares, representing a 54 per cent premium to the closing share price of £37.70 on 9 April.

This is up from its prior offer of £54 per share and initial offer of £51.50, both of which were rejected by Intertek, who said they “fundamentally undervalue Intertek and its future prospects”.

EQT proposal

EQT said the offer delivers “certain and accelerated cash value” for shareholders, “superior to the range of outcomes” that come from Intertek’s standalone prospects.

Intertek said: “EQT is price disciplined and has submitted this significantly higher further increased 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.”

But Intertek confirmed that there is no certainty that an agreement will be reached, and last month launched a strategic review which included a potential break-up of the business into two separate divisions.

Dan Coatsworth, head of markets at AJ Bell said: “The value overseas buyers see in the London market is in evidence again as quality assurance firm Intertek faces a higher takeover offer from Swedish private equity outfit EQT. 

“The £58 per share cash offer may look attractive to investors. However, this is below the all-time highs for the shares and if a deal gets over the line, it will further diminish the breadth and depth of UK plc.”

EQT eyes London

EQT is aggressively expanding its portfolio with UK-based companies beyond hunting Intertek, agreeing to acquire global secondaries specialist Coller Capital in January for £2.7bn.

EQT’s chief executive, Per Franzen, called the deal “an important step”.

Its Active Core Infrastructure fund also agreed to acquire a 42 per cent stake in the parent company of Yorkshire Water in March, and in 2025 an EQT led-consortium completed the acquisition of international private school operator Nord Anglia Educations in a deal valued at £1.1bn.