Shares in energy support services firm Ashtead Technology (LON:AT.) leapt after the company revealed it had received a takeover offer. The news was released just before Wednesday’s close and sent the stock up 60%, although there is already profit-taking today.
Proposed takeover by Ember
Ashtead Technology revealed it had received a takeover proposal from private equity group Ember Infrastructure Management at 615p per share. Prior to the announcement, the shares were trading around the 340p level having tumbled in August on a profit warning.
The 615p offer represents Ember’s fourth attempt to engage with the company after its first two approaches were rejected ‘unequivocally’. Ember owns a portfolio of US-based environmental, recycling, renewable energy, water and waste management companies.
Ashtead Technology is considering the proposal with its advisers and has provided Ember with preliminary due diligence material. As a consequence, the firm is now in an ‘offer period’ until the market close on 21 October 2026.
Ashtead Technology was a multibagger in its first few years as a listed company, but gave up most of its gains. Since the start of 2026, however, it had refound its form and the shares were rallying nicely until August’s warning.
Given the price was languishing around 340p, we’re not surprised the latest offer hasn’t been rejected out of hand. What does surprise us is the discount the market is pricing in, with the shares trading almost a pound below the offer.
Usually we would expect ‘arbitragers’ to swoop in and close the discount, but maybe they feel the risks outweighs the reward. Either way, it’s unusual to see close to 20% upside still available in a bid situation.
