(Bloomberg) -- Senior Plc, a supplier of aerospace parts to Boeing Co. and Rolls-Royce Holdings Plc, rejected a 738 million-pound ($1 billion) takeover proposal from Lone Star Funds.
Lone Star offered 176 pence a share in cash for Senior on May 20, the private-equity firm said in a statement Friday, adding that the approach was its third for the U.K. company.
Senior said separately that the proposal “fundamentally undervalued Senior and its future prospects,” and had been unanimously rejected by its board.
Lone Star has until June 25 to confirm that it intends to make a firm offer or walk away, the suitor said, adding that it’s considering its position and that there’s no certainty a bid will be forthcoming.
Senior makes products including fuel systems, structural parts and turbine engine components for the aerospace and defense industries, with its biggest customers also including Lockheed Martin Corp., Spirit AeroSystems Holdings Inc., Raytheon Technologies Corp. and Airbus SE.
Its Flextronics division is a supplier of thermal management systems for automotive and industrial uses.
Shares of Senior rose before the statement on the approach and closed 34% higher at 159 pence in London for their biggest gain since 2008. That’s about 10% shy of the offer price.
(Updates with Senior comment in third paragraph, adds closing share price)
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