PrimeStone Urges Intertek to Engage EQT's Takeover Bid

Shareholder Pressures Intertek Board Over EQT Bid

PrimeStone Capital LLP, a shareholder with an approximate 0.5% stake in Intertek Group plc, has publicly urged the company's board to engage with a takeover proposal from private equity firm EQT. The proposal values Intertek at £59.1 per share.

Acquisition Offer and Shareholder Concerns

In a public letter, PrimeStone stated that EQT's offer represents a significant 55% premium to Intertek's undisturbed share price. The investment firm expressed concern that the board's response does not reflect serious engagement. PrimeStone highlighted that under the current CEO's 11-year tenure, Intertek has underperformed its main peers, SGS and Bureau Veritas, as well as the FTSE 100 index, based on total shareholder return.

Governance and Strategic Implications

The shareholder raised governance issues, noting the board's decision comes during a chairman transition and that several directors hold less than their annual board fees in company shares. PrimeStone also questioned the timing of Intertek's strategic review, which was announced just two days after EQT's initial approach. The firm is pushing for the board to grant EQT supervised due diligence access to facilitate a final offer.

Summary

PrimeStone Capital is advocating for Intertek's board to seriously consider EQT's acquisition offer against what it calls a more realistic valuation. The market will be monitoring the board's response to this public pressure, which could influence the company's strategic direction and share value.

FAQ

Q: What is EQT's offer for Intertek?
A: EQT has proposed an acquisition of Intertek Group plc for £59.1 per share.

Q: Why is PrimeStone Capital pressuring the board?
A: PrimeStone believes the board is undervaluing EQT's offer and is urging for proper engagement, citing the company's historical underperformance and the significant premium offered.

Source: Investing.com