Intertek Inclined to Recommend EQT’s Final £9.2 Billion Offer

Intertek Group Plc is leaning toward recommending a fourth and final takeover offer from private equity firm EQT AB.

The British product-testing firm said in a statement Wednesday that it had taken the decision after significant engagement with its shareholders. EQT on Tuesday bid £60-a-share in cash, which valued the London-listed company at around £9.2 billion ($12.5 billion).

Under EQT’s proposal, investors would also receive a dividend of up to £1.077, as announced by Intertek in March. Intertek quickly came under pressure from some of its top shareholders, including Matt Peltz and Harris Associates LP, to open talks with its suitor.

“The board of Intertek considers that the financial terms of the final proposal deliver value in cash to Intertek shareholders at a level which it would be minded to recommend,” the company said Wednesday.

Intertek has also decided to pause a previously announced strategic review. Intertek’s shares closed up 6.4% at £53.00 in London on Tuesday, giving the company a market value of around £8.2 billion.

Read More: Intertek Holders Peltz, Harris Say It’s Time to Engage With EQT

Intertek tests the quality, safety and sustainability of products used in sectors including chemicals and food and healthcare. The company’s history stretches back to the late 19th century, when it began certifying grain cargoes before their transport by sea. It now employs more than 45,000 people in 100 countries, its website shows.

While increased demand for testing services made Intertek a pandemic-era winner, its shares have underperformed since then, falling around 40% from a 2020 high to before EQT made its first offer.

Intertek rejected three bids from EQT, saying they undervalued the company. Bloomberg News reported previously that Intertek and its shareholders could be more comfortable with a bid in the region of £60 or above.

Morgan Stanley is advising EQT on the deal. Goldman Sachs Group Inc. and JPMorgan Chase & Co. are acting as financial advisers and corporate brokers to Intertek.