Summary
Apollo Global Management has decided not to present a firm offer to acquire Bodycote, the U.S.-based alternative asset manager and the British thermal processing services group said on Friday. The announcement ends negotiations over a conditional all-cash proposal that was put to Bodycote last month and valued at 1.52 billion, or around $2.04 billion.
Background to the proposal
According to the companies, Apollo had submitted a conditional all-cash bid following several earlier approaches. The offer, which stood at 885 pence per share, represented a premium of almost 27% to the prior share price when it was unveiled. The bid was conditional and was made in cash.
Regulatory consequence
With its public statement that it does not intend to table a firm offer, Apollo will be subject to a restriction under British takeover rules that prevents it from making another approach for six months except under specified circumstances. The companies did not elaborate on what those specific conditions might entail.
Comments from Apollo
In a brief statement, Apollo said it "continues to hold Bodycote and its management team in high regard, is appreciative of the discussions with them and Bodycotes board of directors." The statement offered no explanation for the decision not to proceed with a firm offer.
Currency reference
The announcement included a currency reference of $1 = 0.7450 pounds.
Impacted sectors
- Industrial services and manufacturing - Bodycote operates in thermal processing services.
- Private equity and alternative asset management - Apollo is the bidder and a participant in M&A activity.
Note on available information
The companies public statements provide the principal facts above: a conditional all-cash bid was submitted and is now not being advanced to a firm offer, Apollo issued a brief statement of regard for Bodycote and its board, and the six-month restriction under UK takeover rules applies. No additional reasons or detailed timelines were provided by either party in those statements.