Senior in talks over potential takeover, shares surge

27th Feb 2026 08:38

(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 1000 GMT, the shares were up 18.8% at 306p.

Russ Mould, investment director at AJ Bell, said: "Senior is the latest UK stock to become a takeover target. The engineer has received three proposals from an undisclosed party this year, all rejected on grounds of valuation. It subsequently fished around for other interested parties and has received two all-cash proposals.

"It means Senior is a red-hot takeover prospect and another example of the UK stock market having a veritable feast of quality businesses. What's interesting is how Senior is not a bargain basement stock and a sitting duck on valuation grounds. It was trading at 26 times forward earnings last night, having re-rated from 13-times last May.

"The fact we've now had three different parties show interest would suggest Senior is worth a premium price to certain buyers hoping to tap into its skills and talents."