Vesuvius
VSVS · Main Market · Industrial Goods and Services · mcap £1,145m · 444.0p 3 open situations →
Open · 3
Possible offer
RHI Magnesita has made unsolicited proposals since 29 September 2025 (first 448p cash), all rejected. On 29 September 2026 RHIM confirmed advanced talks with the board on a possible recommended cash-and-share offer, the 27 August Latest Proposal, worth 549p at 28 September (c.47% premium). Cevian (c.23%) has given an irrevocable that applies only if the board recommends. No firm offer yet.
- Latest proposal
- 470p cash plus 0.28 new RHI shares per 10 Vesuvius shares, received 27 August 2026 29 Sep 2026 ↗
- Value
- 551p per share on RHI 1-month VWAP at 27 August 2026; holders would own c.13% of enlarged RHI 29 Sep 2026 ↗
- Bidder
- RHI Magnesita N.V.; Vesuvius holders would own c.13% of enlarged RHIM; RHIM board and main holders back it 29 Sep 2026 ↗
- Board view
- In advanced discussions; Latest Proposal under consideration; no certainty of a firm offer 29 Sep 2026 ↗
- Irrevocables
- Cevian: 57,249,896 shares, c.23%; lapses if no recommended Rule 2.7 announcement by 5pm 31 October 2026 29 Sep 2026 ↗
- Timetable
- RHIM must announce a firm offer or walk away by 5pm on 27 October 2026 (extendable with Panel consent) 29 Sep 2026 ↗
Next: RHIM firm offer (Rule 2.7) or walk away · 27 Oct 2026
- 29 Sep 2026 approach
- 29 Sep 2026 approach · 448p
Structural cost reduction programme
The programme targets £55m cumulative annual savings by 2028. H1 2026 delivered £7.4m, ahead of schedule, and at least c.£10m is expected for 2026. Advanced Refractories manufacturing in South Africa and South America will be exited in H2 for lack of profitability. H1 programme costs were £16.4m, including £10.4m non-cash impairments.
- H1 savings
- £7.4m delivered in H1 2026, ahead of schedule
- 2026 target
- Minimum c.£10m in 2026
- 2028 target
- £55m annual cost savings in-year by 2028
- H1 costs
- £16.4m: £4.3m redundancy, £10.4m non-cash impairments (H1 2025: £4.3m)
- Exits
- Advanced Refractories operations in South Africa and South America exited in H2 2026
Next: deliver at least c.£10m of savings in 2026 · 31 Dec 2026
- 30 Jul 2026 On track; £7.4m delivered in H1
- 28 May 2026 on track; £55m cumulative by 2028
- 12 Mar 2026 £17.8m delivered in 2025, ahead of expectations
- 11 Nov 2025 On track
FY26 guidance downgrade
On 28 May 2026 Vesuvius confirmed FY26 expectations with a stronger H2. On 27 July it cut guidance to profit slightly ahead of FY25. The 30 July results confirm H1 trading profit of £74.0m, flat at constant currency, with c.£6m lost in North America and c.£2m at Vizag. The company says the issues will be resolved by year-end.
- H1 profit
- Trading profit £74.0m, (0.1%) at constant currency; includes a one-off tariff benefit received at end of June
- FY26 guidance
- Trading profit slightly ahead of FY25, constant currency; unchanged from 27 July
- Causes
- Steel operational issues; challenging Advanced Refractories market, especially Europe
- Resolution
- Expected by end of 2026; residual H2 impact depends on speed of fixes
- Next milestone
- Half year results 7.00am, 30 July 2026
- North America impact
- Estimated H1 lost profit c.£6m: substandard supplier raw materials, maintenance and capability gaps
Next: Steel operational issues to be resolved by year-end · 31 Dec 2026
- 30 Jul 2026 Cut guidance confirmed at half-year results
- 27 Jul 2026 Warning issued; Steel issues due fixed by year-end
Closed · 2
Company filings. Not investment advice.