Senior in talks over potential takeover, shares surge

(Sharecast News) - Senior shares surged on Friday after the engineer said it had received and rejected several takeover proposals in the last couple of months, but that discussions with two suitors are ongoing. The company received a preliminary, non-binding all-cash proposal from a potential offeror on 14 January that was unanimously rejected on the basis that it fundamentally undervalued the group and its future prospects.

Two subsequent, higher proposals from the same offeror were received and rejected in February.

Following these approaches, Senior appointed Lazard and Jefferies to initiate discussions with a limited number of third parties regarding a possible offer "to determine the value that could potentially be achieved".

"Following a period of discussions with these other parties, the company confirms it has received two further, superior all-cash proposals from other potential offerors. Discussions with potential offerors remain ongoing."

As a result of these discussions, Senior has postponed the start of the £40m buyback programme that was due to start following the full-year results. "The board will keep this under review and make a further announcement as necessary," it said.

Senior added that there can be no certainty that an offer will be made nor as to the terms on which any offer might be made.

At 0835 GMT, the shares were up 18.6% at 305.50p.