Intertek Group PLC shares fell 3.2% on Friday after the company disclosed that its board had unanimously turned down a revised cash offer from EQT of £58.00 per share, saying the proposal both materially undervalues the business and involves execution risk.
The board's rejection occurred on May 8, following earlier proposals from EQT X EUR SCSp and EQT X USD SCSp of £51.50 and £54.00 per share, which had likewise been declined. Under applicable UK takeover rules, EQT must either announce a firm intention to make an offer or walk away by May 14.
Strategic review remains the company priority
Intertek reiterated that its ongoing strategic review, announced on April 14, remains the preferred path to unlock shareholder value. The review is focused on evaluating the potential separation of Intertek Energy & Infrastructure from Intertek Testing & Assurance, by means of either a sale or a demerger.
The company provided divisional financials in its statement: Intertek Testing & Assurance reported £1,844.4 million in revenue with a 25.0% operating margin for 2025, while Intertek Energy & Infrastructure generated £1,587.2 million in revenue with a 10.0% operating margin for the same period.
Management confirmed the strategic review has commenced and is targeting conclusion and implementation by mid-2027. The board said it is prioritizing a sales-led process for the Energy & Infrastructure unit and noted it has received an encouraging level of interest from potential buyers.
Operational and cost considerations
The board expects only limited incremental costs associated with a separation, citing the group's decentralized structure and the fact that most costs are already allocated to each division. Management indicated that each business, if separated, would aim not to materially increase its cost base as a result of the separation.
Intertek operates more than 1,000 laboratories and offices across more than 100 countries, offering quality assurance, testing, inspection and certification services.
What happens next
EQT faces a regulatory deadline of May 14 to clarify whether it will proceed with a firm offer or withdraw its interest. Meanwhile, Intertek is pressing ahead with the strategic review it deems more likely to deliver greater value for shareholders than the cash proposal put forward by EQT.