Story
Vesuvius Shares Surge Over 20% on RHI Magnesita Takeover Approach
Summary
The UK-based engineering firm confirmed it received an unsolicited offer valuing its shares at 551 pence each, a proposal that has received backing from a major shareholder.
Shares of Vesuvius plc (LSE: VSVS) surged on Tuesday after the molten metal flow engineering company confirmed it had received multiple unsolicited takeover approaches from rival RHI Magnesita N.V. The news sent Vesuvius stock up by as much as 23.1% during the session.
The Proposal Details
Vesuvius stated that the most recent proposal from the Vienna-based refractory products supplier arrived on August 27, 2026. The offer values Vesuvius shares at an implied 551 pence each, a significant premium to their prior trading level.
The proposed deal structure consists of:
- 470 pence in cash per Vesuvius share.
- 0.28 new RHI Magnesita shares for every 10 Vesuvius shares held.
- The right for shareholders to receive Vesuvius’s declared interim dividend of 7.1 pence per share without a reduction in the offer price.
Shareholder Support and Next Steps
AdThe bid gained significant credibility from the backing of a key institutional investor. According to the announcement, Cevian Capital AB, a Vesuvius shareholder since 2012, provided RHI Magnesita with an irrevocable undertaking on August 27 to support a recommended offer on these terms.
Under the UK's Takeover Code, RHI Magnesita now faces a deadline of 5 p.m. London time on October 27, 2026, to either announce a firm intention to make an offer or walk away. Vesuvius said its board is evaluating the latest proposal with its financial and legal advisers and has advised its shareholders to take no action at this time.
Market Reaction
In response to the news, Vesuvius shares reached an intraday high of 494 pence. The stock's trading price remains below the 551 pence implied offer value, a gap that reflects market uncertainty over whether a formal, recommended bid will ultimately be finalized and approved.
The sharp, company-specific stock move occurred against a backdrop of a modestly higher session for the broader UK market, with the mid-cap FTSE 250 index, of which Vesuvius is a constituent, edging upward.
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