A conditional all-cash proposal from Apollo Global Management values UK-listed Bodycote, which provides heat treatment and metal processing services, at about £1.52 billion ($2.04 billion).

The 885-pence-per-share approach represents a nearly 27% premium to Bodycote’s previous London closing price, and shareholders would retain entitlement to a proposed final dividend of 16.1 pence.

Bodycote’s services are used to improve the performance and durability of metal components in aerospace, defence, automotive and energy applications.

The company said the proposal followed several earlier approaches from Apollo Global Management and that discussions were continuing, with no certainty that a firm offer would be made or on what terms.