Bodycote (LON: BOY) surged 16% on Friday after confirming it has received a conditional takeover proposal from private equity firm Apollo Management.
Under the proposal, shareholders would receive 885 pence per share in cash, alongside the proposed final dividend of 16.1 pence per share for the 2025 financial year without any reduction to the offer price.
The move marks the latest bout of foreign acquisition interest in the London market. The proposal values the British thermal processing services group at about £1.52 billion ($2.04 billion) and represents a nearly 27% premium to Bodycote’s closing price on Thursday, sending the stock to its highs of the day as investors bet on deal completion.
The proposal follows a number of previous approaches from Apollo about a possible offer, with the board and Apollo now in discussions regarding the proposal.
Under UK takeover rules, Apollo has until 5:00 p.m. on June 19, 2026 to either announce a firm intention to make an offer or walk away. There can be no certainty that any offer will be made, nor as to the final terms on which any offer might be made.
Bodycote, which specialises in heat treatment and thermal processing services, joins a growing list of UK-listed companies attracting overseas bidders.
The move comes as other UK firms including Intertek and Tate & Lyle have also received bids from international buyers. The company recently executed an £80 million share buyback programme as part of its capital return strategy.