Bodycote Shares Plunge After Apollo Withdraws GBP1.5 Billion Takeover Offer
Shares of Bodycote (BOY.L) dropped steeply in early trading on Friday after private equity giant Apollo Global Management confirmed it would not proceed with a formal takeover offer for the thermal processing and heat treatment specialist.Following several previous approaches, Apollo launched a conditional cash proposal in late May, offering 8.85 pounds sterling per Bodycote share and valuing the company at 1.51 billion pounds.The withdrawal of the bid sent Bodycote shares down more than 10% in early trading in London, nearly erasing gains recorded since Apollo's interest became public."Apollo continues to hold Bodycote and its management team in high regard, is appreciative of the discussions with them and Bodycote's board of directors," the private equity firm said Friday.Under the UK's takeover rules, Apollo is now barred from making another approach for six months without the takeover panel's consent. Exceptions apply if Bodycote's board recommends a transaction, a competing bidder emerges, or there is a material change in circumstances.Bodycote's board said it "has strong confidence in Bodycote's potential and its strategy to create a high-performing, resilient business with attractive growth prospects."
