Aerospace engineer Senior said on Tuesday that it has rejected a fifth and final takeover approach from US private equity firm Lone Star valuing the group at around £839m.
Lone Star announced on Monday that it had made a 200p a share in cash offer for Senior. It made clear that this would be its final offer unless a rival bidder emerges. Senior had previously rejected four bids, including an offer of 185p in June.
Senior dismissed the final offer as “highly opportunistic”, arguing that it still “fundamentally undervalues” the group and comes at a low point when core markets remain temporarily impacted by the fallout from the pandemic.
“Following careful consideration, together with its advisers, the board has unanimously rejected this fifth and final proposal, which represents only an 8% increase to Lone Star’s previously rejected conditional proposal of 185 pence for Senior share, and continues to fundamentally undervalue Senior and its future prospects,” it said.
At 1550 BST, the shares were down 14.3% at 142p, extending earlier losses. The stock was already sharply lower before the announcement, after Bloomberg reported that Senior was set to reject the bid as early as Tuesday.
(Sean Farrell contributed to this report)
