UK's Bodycote gets $2 billion Apollo buyout proposal
Main Details of the Apollo Buyout Proposal
Overview of the Proposal
May 22 (Reuters) - Bodycote said it had received a conditional all-cash proposal from Apollo, valuing the British thermal processing services group at about £1.52 billion ($2.04 billion) and sending its shares up as much as 19% on Friday.
The U.S.-based alternative asset manager's proposal of 885 pence per share in cash represents a nearly 27% premium to London-listed Bodycote's closing price on Thursday.
Context: Overseas Interest in UK Companies
Bodycote is the latest UK-listed company to attract interest from overseas buyers, joining a growing list including Intertek and Tate & Lyle which have received bids.
Shareholder Impact and Dividend Details
Dividend Entitlement
Under the offer, Bodycote shareholders will also be entitled to receive a proposed final dividend of 16.1 pence per share for the 2025 financial year, subject to shareholder approval.
Share Price Reaction
Shares in Bodycote, which have risen 26% over the past year, jumped by as much as 19% to 832 pence on the news.
Negotiation Status and Timeline
Ongoing Talks
Bodycote said the proposal followed several earlier approaches from Apollo and that the two sides were in talks, while cautioning there was no certainty any offer would be made or on what terms.
Deadline for Firm Offer
Apollo, which has until June 19 to announce a firm intention to make an offer or walk away, did not immediately respond to a Reuters request for comment.
About Bodycote
Company Services and Industry Sectors
Thermal Processing and Metal Treatment
Bodycote provides heat treatment and other metal processing services to improve the performance and durability of metal components used in industrial sectors including aerospace, defence, automotive and energy.
Additional Information
Currency Exchange Rate
($1 = 0.7450 pounds)
Reporting Credits
(Reporting by Nithyashree R B and Ankita Bora in Bengaluru; Editing by Mrigank Dhaniwala, Janane Venkatraman and Alexander Smith)