EQT has declared its fourth proposal as the final offer, placing the decision squarely with Intertek Group. James Smith, Founder and Chief Investment Officer of Palliser Capital (UK) Limited, spoke at the 13D Monitor Active-Passive Investor Summit. Activist investor James Smith strongly urged Intertek's board to engage with EQT and establish constructive dialogue. Swedish private equity firm EQT has once again increased its takeover offer for UK-based testing services giant Intertek Group, stating that this proposal, valued at £9.4 billion (approximately $12.79 billion) including dividends, represents its final bid. This move marks EQT's last effort to secure a friendly acquisition agreement. Even before the latest offer was disclosed, some Intertek shareholders had expressed their desire for the company to engage in negotiations with the suitor. In response, Intertek stated on Tuesday that it is working with its advisors to evaluate EQT's final takeover proposal. In recent weeks, Intertek has rejected EQT's first three offers, citing a significant undervaluation of the company and reaffirming its commitment to proceed with the planned separation of its Energy & Infrastructure business from the group. During early European trading, Intertek's share price rose 6% to £52.80. EQT stated that submitting the final proposal aims to expedite the process and finalize a formal takeover offer that could be recommended by the board. EQT said, "Our final proposal provides Intertek shareholders with a certain and faster realization of cash value at a full valuation, superior to the various potential outcomes achievable through the company's standalone strategy." According to EQT's latest proposal, Intertek shareholders would receive £60 in cash per share while retaining the previously announced dividend of 107.7 pence per share, resulting in a total consideration of £61.08 per share. Excluding the dividend, this offer values Intertek at £9.24 billion. EQT's cash offer of £60 per share represents a 59% premium to the share price before the takeover interest was reported but remains below the peak share price during the pandemic. EQT's previous cash offers of £51.50, £54, and £58 per share were all rejected by Intertek's board. Last week, when Intertek's board rejected EQT's previous offer, it stated that the proposal not only undervalued the company but also carried significant execution risk. At that time, EQT also expressed disappointment with Intertek's board for refusing to engage. Now that EQT has officially announced its fourth offer as final, the initiative lies entirely with Intertek. This FTSE 100 constituent primarily provides testing, inspection, and certification services. Last month, the company announced plans to divest its Energy & Infrastructure segment, either through a sale or a demerger. A few days later, EQT disclosed its takeover interest. Last week, Intertek indicated that potential buyers had already expressed interest in its energy infrastructure business. Activist investment firm Palliser Capital, which holds a small stake in Intertek, stated on Tuesday that EQT's latest proposal is highly attractive to Intertek shareholders, offering a better outcome than the potential returns achievable through the company's strategic review. Palliser Capital said, "We strongly urge Intertek's board to immediately engage with EQT, establish constructive dialogue, and cooperate with the necessary due diligence to secure a favorable transaction outcome for shareholders." Before EQT issued its final offer, Palliser Capital and another activist firm, Primestone Capital, had publicly called on Intertek to negotiate with EQT and assess the value of the takeover proposal. A fund managed by Primestone Capital holds approximately 0.5% of Intertek's shares. EQT stated that, under UK takeover rules, it must formally announce a firm intention to make an offer by May 14, or else it will abandon the takeover attempt entirely.
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