John Wood Group confirms talks with Apollo as it extends deadline for takeover bid
John Wood Group has confirmed it will hold talks with Apollo to see if a “firm offer can be made on the same terms” as its fifth takeover bid for the company.
Apollo, a US equity investor group, made a fifth and final offer for the oil and engineering specialist this year, at a price of 240p per share – a 59 per cent premium on its share price and a 20 per cent hike on its first original bid.
Wood has granted Apollo access to due diligence materials and extended the deadline for a final offer by nearly a month, stretching the deadline from 19 April this week to 17 May.
This deadline can be further extended by Wood, with the consent of its takeover panel.
In a statement to the London Stock Exchange, the company’s board argued “it remains confident in Wood’s strategic direction and long-term prospects” but that it had opted to engage with Apollo following feedback from its shareholders.
The company revealed Apollo has also told the board “it values the skills and capabilities of Wood’s employees” and it believes the company is “well positioned in its markets and at the forefront of the energy transition and industrial decarbonisation.”
“There can be no certainty that any offer for Wood will be made. Further announcements will be made as appropriate,” Wood said.
The confirmation of talks between both parties has seen Wood’s shares soar seven per cent on the FTSE 250 in this morning’s trading – with the company now priced at 226.7p per share.